High-Quality Growth for aQuantive: Fool by Numbers

On Thursday, Rule Breakers selection and digital marketing agency aQuantive (Nasdaq: AQNT  ) released earnings for the fourth quarter ended Dec. 31, 2006.

  • On both the top and bottom lines, aQuantive beat Street estimates.
  • Margins fell as a result of acquisitions, though management says that it expects to recover some of the shortfall as operations are integrated.
  • For the first quarter, executives expect net income to be between $6 million and $7.5 million and revenue to be between $118 million and $123 million.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$133,415

$87,457

52.5%

Net Profit

$20,433

$11,574

76.5%

EPS

$0.23

$0.15

53.3%

Diluted Shares

88,456

78,404

12.8%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

84.50%

87.63%

(3.13)

Operating Margin

23.43%

23.92%

(0.49)

Net Margin

15.32%

13.23%

2.09

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$278,807

$112,351

148.2%

Accounts Rec.

$273,174

$160,370

70.3%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$251,072

$133,303

88.3%

Long-Term Debt

$80,000

$80,000

0.0%



Learn the ways of the balance sheet.

Cash Flow Checkup

No cash flow statement provided. (Boo!)

Find out why Fools always follow the money.

Related Companies:

  • 24/7 Real Media (Nasdaq: TFSM  )
  • Interpublic Group (NYSE: IPG  )
  • Omnicom (NYSE: OMC  )
  • Publicis Groupe (NYSE: PUB  )
  • WPP Group (Nasdaq: WPPGY  )

Related Foolishness:

aQuantive is a Motley Fool Rule Breakers pick. David Gardner and his team of analysts have unearthed six stocks that have more than doubled in the first two years of this market-beating service. Want to find out who they are? Click here to test-drive Rule Breakersfor 30 days. There's no obligation to subscribe.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Tim Beyers, ranked 1,494 out of more than 22,700 in CAPS, is a sucker for growth stocks and a regular contributor to Rule Breakers. Tim owns shares of Interpublic and will be buying shares of aQuantive when disclosure rules allow. All of his portfolio holdings can be found at Tim's Fool profile. His thoughts on growth stocks, Foolishness, and investing in general may be found in his blog. The Motley Fool's disclosure policy always adds up.


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