On Wednesday, former Motley Fool Rule Breakers pick aQuantive
- Excluding $6.2 million (after tax) in charges relating to its acquisition by Microsoft
(NASDAQ:MSFT) , aQuantive improved its bottom line by roughly 28%. - Revenue growth was led by aQuantive's digital performance media group, which realized an 81% gain on the top line.
- Free cash flow ran negative during the quarter thanks to the aforementioned Microsoft charges and a massive increase in payables, presumably designed to clear the books before Mr. Softy takes command.
- Nevertheless, the professional and amateur stock pickers following aQuantive in our Motley Fool CAPS investor-intelligence database give the stock four out of five stars.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$155,975 |
$105,629 |
47.7% |
|
Net Profit |
$9,613 |
$12,337 |
(22.1%) |
|
EPS |
$0.11 |
$0.15 |
(26.7%) |
|
Diluted Shares |
90,844 |
87,448 |
3.9% |
Get back to basics with a look at the income statement.
Margin Checkup|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
84.10% |
85.56% |
(1.46) |
|
Operating Margin |
8.38% |
16.92% |
(8.54) |
|
Net Margin |
6.16% |
11.68% |
(5.52) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$309,697 |
$307,612 |
0.7% |
|
Accounts Rec. |
$271,093 |
$183,104 |
48.1% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$164,848 |
$99,136 |
66.3% |
|
Long-Term Debt |
$79,715 |
$80,000 |
(0.4%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$5,708 |
$35,855 |
(84.1%) |
|
Capital Expenditures |
$18,289 |
$10,988 |
66.4% |
|
Free Cash Flow |
($12,581) |
$24,867 |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
- How did we do with our Foolish Forecast?
- Mr. Softy had to deal with Google
(NASDAQ:GOOG) somehow. - Spiffy-pop! There goes another daybagger.
How great is growth? More than 10 stocks in the market-beating Motley Fool Rule Breakers portfolio have more than doubled. Discover the identities of the other high-growth companies with a 30-day free trial of the service. There's no obligation to subscribe.
Microsoft is an Inside Value pick.
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 owned shares of aQuantive at the time of publication. Find Tim's portfolio here and his latest blog commentary here. The Motley Fool's disclosure policy used to run numbers down by the Jersey shore. Today, it runs circles around Wall Street.