EarthLink (Nasdaq: ELNK ) reported earnings on Feb. 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), EarthLink beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share shrank to zero.
Margins contracted across the board.
EarthLink notched revenue of $331.6 million. The four analysts polled by S&P Capital IQ expected to see sales of $328.2 million on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $350.2 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 $0.00. The four earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.04.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.9%, 110 basis points worse than the prior-year quarter. Operating margin was 5.4%, 370 basis points worse than the prior-year quarter. Net margin was 0.0%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $323.9 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $1.28 billion. The average EPS estimate is $0.05.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 276 members out of 360 rating the stock outperform, and 84 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give EarthLink a green thumbs-up, and 24 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 $9.25.
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