Demand Media (NYSE: DMD ) is expected to report Q1 earnings on May 7. 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 Demand Media's revenues will grow 15.5% and EPS will expand 14.3%.
The average estimate for revenue is $99.6 million. On the bottom line, the average EPS estimate is $0.08.
Last quarter, Demand Media reported revenue of $103.1 million. GAAP reported sales were 22% higher than the prior-year quarter's $84.4 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 $0.12. GAAP EPS were $0.05 for Q4 versus -$0.08 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 preceding quarter, gross margin was 52.6%, 20 basis points better than the prior-year quarter. Operating margin was 5.5%, 370 basis points better than the prior-year quarter. Net margin was 4.6%, much better than the prior-year quarter.
The full year's average estimate for revenue is $431.3 million. The average EPS estimate is $0.41.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 34 members out of 70 rating the stock outperform, and 36 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Demand Media a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Demand Media is hold, with an average price target of $11.57.
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