The 10-second takeaway
For the quarter ended March 31 (Q1), j2 Global missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped. GAAP earnings per share dropped significantly.
Gross margins increased, operating margins dropped, net margins dropped.
j2 Global logged revenue of $113.6 million. The six analysts polled by S&P Capital IQ expected a top line of $115.9 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $86.7 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 $0.58. The six earnings estimates compiled by S&P Capital IQ predicted $0.64 per share. Non-GAAP EPS of $0.58 for Q1 were 9.4% lower than the prior-year quarter's $0.64 per share. GAAP EPS of $0.49 for Q1 were 18% lower than the prior-year quarter's $0.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 82.2%, 50 basis points better than the prior-year quarter. Operating margin was 29.0%, much worse than the prior-year quarter. Net margin was 20.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $135.3 million. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $519.7 million. The average EPS estimate is $2.84.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 445 members out of 471 rating the stock outperform, and 26 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 138 give j2 Global a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on j2 Global is outperform, with an average price target of $38.50.
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