The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Advisory Board met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins dropped, net margins dropped.
Advisory Board logged revenue of $116.2 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $115.7 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $100.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.28. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. GAAP EPS of $0.12 for Q3 were 48% lower than the prior-year quarter's $0.23 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.7%, 10 basis points better than the prior-year quarter. Operating margin was 8.2%, 430 basis points worse than the prior-year quarter. Net margin was 3.8%, 420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $118.6 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $449.1 million. The average EPS estimate is $1.21.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 44 members out of 79 rating the stock outperform, and 35 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Advisory Board a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advisory Board is outperform, with an average price target of $50.44.
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