The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ancestry.com met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins increased, net margins grew.
Ancestry.com reported revenue of $104.2 million. The seven analysts polled by S&P Capital IQ predicted net sales of $104.1 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $82.7 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 $0.40. The nine earnings estimates compiled by S&P Capital IQ predicted $0.36 per share on the same basis. GAAP EPS of $0.39 for Q4 were 50% higher than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 82.7%, 20 basis points worse than the prior-year quarter. Operating margin was 26.5%, 320 basis points better than the prior-year quarter. Net margin was 17.6%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $107.8 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $462.4 million. The average EPS estimate is $1.62.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 329 members out of 366 rating the stock outperform, and 37 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 give Ancestry.com a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ancestry.com is outperform, with an average price target of $36.80.
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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. Motley Fool newsletter services have recommended buying shares of Ancestry.com. 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.