The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Charm Communications whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Charm Communications logged revenue of $47.1 million. The two analysts polled by S&P Capital IQ predicted a top line of $53.2 million on the same basis. GAAP reported sales were 41% lower than the prior-year quarter's $80.3 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 -$0.10. The one earnings estimate compiled by S&P Capital IQ anticipated -$0.05 per share. Non-GAAP EPS were -$0.10 for Q4 compared to $0.36 per share for the prior-year quarter. GAAP EPS were -$0.13 for Q4 compared to $0.35 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 27.6%, much worse than the prior-year quarter. Operating margin was -8.8%, much worse than the prior-year quarter. Net margin was -10.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $40.8 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $199.7 million. The average EPS estimate is $0.40.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 11 members out of 16 rating the stock outperform, and five members rating it underperform. Among one CAPS All-Star picks (recommendations by the highest-ranked CAPS members), give Charm Communications a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Charm Communications is outperform, with an average price target of $9.25.
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