The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Solera Holdings met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share shrank.
Margins shrank across the board.
Solera Holdings reported revenue of $195.1 million. The eight analysts polled by S&P Capital IQ wanted to see sales of $195.4 million. Sales were 16% higher than the prior-year quarter's $168.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.66. The eight earnings estimates compiled by S&P Capital IQ predicted $0.68 per share on the same basis. GAAP EPS of $0.39 for Q2 were 11% lower than the prior-year quarter's $0.44 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 69.3%, 40 basis points worse than the prior-year quarter. Operating margin was 29.4%, 150 basis points worse than the prior-year quarter. Net margin was 14.5%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $198.5 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $792.0 million. The average EPS estimate is $2.75.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 59 members out of 77 rating the stock outperform, and 18 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Solera Holdings a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Solera Holdings is outperform, with an average price target of $54.92.
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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.