The 10-second takeaway
For the quarter ended Dec. 31 (Q4), United Online beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
United Online reported revenue of $219.0 million. The three analysts polled by S&P Capital IQ expected to see a top line of $216.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.14. The three earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. Non-GAAP EPS of $0.14 for Q4 were 44% lower than the prior-year quarter's $0.25 per share. GAAP EPS were -$0.14 for Q4 compared to $0.14 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.8%, 420 basis points worse than the prior-year quarter. Operating margin was 5.8%, 730 basis points worse than the prior-year quarter. Net margin was -5.7%, 1,160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $237.9 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $867.5 million. The average EPS estimate is $0.62.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 254 members out of 281 rating the stock outperform, and 27 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give United Online 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 United Online is buy, with an average price target of $7.41.
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