The 10-second takeaway
For the quarter ended June 30 (Q1), Advisory Board beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share didn't change. GAAP earnings per share dropped.
Margins contracted across the board.
Advisory Board logged revenue of $123.2 million. The 10 analysts polled by S&P Capital IQ anticipated a top line of $121.9 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $104.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.31. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.28 per share. Non-GAAP EPS of $0.31 were the same as the prior-year quarter. GAAP EPS of $0.10 for Q1 were 9.1% lower than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 46.5%, 80 basis points worse than the prior-year quarter. Operating margin was 8.7%, 340 basis points worse than the prior-year quarter. Net margin was 3.0%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $128.2 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $521.3 million. The average EPS estimate is $1.28.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 43 members out of 74 rating the stock outperform, and 31 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Advisory Board a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advisory Board is outperform, with an average price target of $52.38.
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