The 10-second takeaway
For the quarter ended Dec. 31 (Q2), QuinStreet missed estimates on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Margins dropped across the board.
QuinStreet notched revenue of $90.5 million. The nine analysts polled by S&P Capital IQ predicted a top line of $95.1 million. Sales were 7.2% lower than the prior-year quarter's $97.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.09. The eight earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.09 for Q2 were 36% lower than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 24.4%, 320 basis points worse than the prior-year quarter. Operating margin was 9.4%, 230 basis points worse than the prior-year quarter. Net margin was 4.9%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $106.2 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $403.8 million. The average EPS estimate is $0.44.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 24 members out of 30 rating the stock outperform, and six members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give QuinStreet a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QuinStreet is outperform, with an average price target of $12.39.
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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. 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.