The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Blucora beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Blucora booked revenue of $97.5 million. The four analysts polled by S&P Capital IQ expected sales of $89.3 million on the same basis. GAAP reported sales were 46% higher than the prior-year quarter's $66.6 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 $0.24. The one earnings estimate compiled by S&P Capital IQ forecast $0.19 per share. GAAP EPS of $0.04 for Q4 were 93% lower than the prior-year quarter's $0.57 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 24.4%, 510 basis points worse than the prior-year quarter. Operating margin was 3.9%, 810 basis points worse than the prior-year quarter. Net margin was 3.9%, 3,040 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $149.6 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $467.3 million. The average EPS estimate is $1.85.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 143 members out of 179 rating the stock outperform, and 36 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Blucora a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Blucora is buy, with an average price target of $21.40.
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