The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Taleo missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share was unchanged.
Gross margins improved, operating margins dropped, net margins dropped.
Taleo reported revenue of $84.8 million. The 17 analysts polled by S&P Capital IQ foresaw revenue of $86.4 million. GAAP sales were 26% higher than the prior-year quarter's $67.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.26. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.23 per share on the same basis. GAAP EPS of -$0.02 were the same as 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 68.7%, 290 basis points better than the prior-year quarter. Operating margin was -1.7%, 310 basis points worse than the prior-year quarter. Net margin was -1.1%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $89.1 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $379.3 million. The average EPS estimate is $1.12.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 157 members out of 186 rating the stock outperform, and 29 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Taleo a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Taleo is outperform, with an average price target of $40.21.
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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.