The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ReachLocal met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share dropped.
Margins increased across the board.
ReachLocal booked revenue of $99.8 million. The seven analysts polled by S&P Capital IQ predicted revenue of $99.4 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $80.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.04. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.06 per share. GAAP EPS were -$0.04 for Q4 against -$0.13 per share for 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 50.7%, 480 basis points better than the prior-year quarter. Operating margin was 1.1%, 630 basis points better than the prior-year quarter. Net margin was -1.2%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $102.8 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $442.6 million. The average EPS estimate is -$0.11.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 82 members out of 85 rating the stock outperform, and three members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give ReachLocal a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ReachLocal is outperform, with an average price target of $13.81.
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