EarthLink (Nasdaq: ELNK ) is expected to report Q4 earnings on Feb. 19. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict EarthLink's revenues will decrease -6.3% and EPS will wither -75.0%.
The average estimate for revenue is $328.2 million. On the bottom line, the average EPS estimate is $0.02.
Last quarter, EarthLink notched revenue of $334.8 million. GAAP reported sales were 6.3% lower than the prior-year quarter's $357.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.07. GAAP EPS of $0.01 for Q3 were 86% lower than the prior-year quarter's $0.07 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 52.8%, 200 basis points worse than the prior-year quarter. Operating margin was 6.3%, 510 basis points worse than the prior-year quarter. Net margin was 0.4%, 170 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $1.35 billion. The average EPS estimate is $0.25.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 276 members out of 359 rating the stock outperform, and 83 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give EarthLink a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EarthLink is outperform, with an average price target of $9.50.
Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is EarthLink on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.