The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Higher One whiffed on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank.
Gross margins grew, operating margins contracted, and net margins dropped.
Higher One logged revenue of $41.7 million. The nine analysts polled by S&P Capital IQ expected sales of $51.4 million. Sales were 3.5% lower than the prior-year quarter's $39.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.13. The five earnings estimates compiled by S&P Capital IQ forecast $0.17 per share. GAAP EPS of $0.13 for Q4 were 7.1% 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 59.1%, 70 basis points better than the prior-year quarter. Operating margin was 27.1%, 2,280 basis points worse than the prior-year quarter. Net margin was 18.3%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $60.2 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $221.6 million. The average EPS estimate is $0.85.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 35 members out of 37 rating the stock outperform, and two members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Higher One a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Higher One is outperform, with an average price target of $23.00.
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