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.
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