Rentrak Misses Where it Counts (RENT)

Rentrak Misses Where it Counts

Rentrak (Nasdaq: RENT ) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Rentrak met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP loss per share shrank.

Gross margins dropped, operating margins dropped, net margins expanded.

Revenue details
Rentrak tallied revenue of $24.9 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $25.0 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $22.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.02. The three earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share. GAAP EPS were -$0.15 for Q3 versus -$0.18 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.5%, 330 basis points worse than the prior-year quarter. Operating margin was -7.1%, 270 basis points worse than the prior-year quarter. Net margin was -7.3%, 150 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $26.9 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $97.7 million. The average EPS estimate is $0.11.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 43 members out of 56 rating the stock outperform, and 13 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Rentrak a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rentrak is outperform, with an average price target of $23.71.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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