The 10-second takeaway
For the quarter ended June 30 (Q2), Active Network met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
Active Network chalked up revenue of $121.6 million. The seven analysts polled by S&P Capital IQ anticipated sales of $120.8 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $99.0 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 $0.11. The six earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share. GAAP EPS were -$0.04 for Q2 versus $0.03 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 quarter, gross margin was 56.5%, 290 basis points worse than the prior-year quarter. Operating margin was 0.6%, 700 basis points worse than the prior-year quarter. Net margin was -1.9%, 750 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $111.1 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $429.3 million. The average EPS estimate is $0.04.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 19 members out of 26 rating the stock outperform, and seven members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Active Network a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Active Network is buy, with an average price target of $20.38.
Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Active Network on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Active Network to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend The Active Network. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.