EarthLink (Nasdaq: ELNK ) is expected to report Q1 earnings on May 2. 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 compress -7.8% and EPS will shrink to a loss.
The average estimate for revenue is $317.5 million. On the bottom line, the average EPS estimate is -$0.07.
Last quarter, EarthLink booked revenue of $331.6 million. 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.
Last quarter, non-GAAP EPS came in at $0.04. GAAP EPS shrank 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 preceding 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.
The full year's average estimate for revenue is $1.24 billion. The average EPS estimate is -$0.27.
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 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give EarthLink a green thumbs-up, and 22 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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