Support.com Beats Up on Analysts Yet Again

Support.com (Nasdaq: SPRT  ) reported earnings on Feb. 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Support.com met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.

Margins grew across the board.

Revenue details
Support.com reported revenue of $18.9 million. The four analysts polled by S&P Capital IQ predicted revenue of $18.8 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $15.0 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 $0.06. The four earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. GAAP EPS were $0.02 for Q4 against -$0.09 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 52.7%, 1,290 basis points better than the prior-year quarter. Operating margin was 5.2%, 3,300 basis points better than the prior-year quarter. Net margin was 6.9%, 3,590 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $20.0 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $89.6 million. The average EPS estimate is $0.18.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 54 members out of 67 rating the stock outperform, and 13 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Support.com 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 Support.com is buy, with an average price target of $6.08.

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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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  • Report this Comment On February 15, 2013, at 6:03 AM, rsinj wrote:

    Over 50 articles a day now Seth?

    Seems you really have that cookie cutter template program auto-generating articles humming now - huh?

    Since your articles are not written, but merely "generated", I won't be wasting my tme reading.

    It's really too bad that this is what journalism has degenerated into.

    Congrats to you and MF! You should really appeal to a nice swath of the investing population that are into automatons.

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