The 10-second takeaway
For the quarter ended Dec. 31 (Q4), XO Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins improved, and net margins improved.
XO Group reported revenue of $30.9 million. The six analysts polled by S&P Capital IQ anticipated net sales of $30.9 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $27.5 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 $0.09. The six earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. GAAP EPS of $0.09 for Q4 were 80% higher than the prior-year quarter's $0.05 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 81.6%, 100 basis points worse than the prior-year quarter. Operating margin was 13.9%, 390 basis points better than the prior-year quarter. Net margin was 8.2%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $30 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $135.1 million. The average EPS estimate is $0.29.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 536 members rating the stock outperform and 43 members rating it underperform. Among 175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 168 give XO Group 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 XO Group is outperform, with an average price target of $11.11.
Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is XO Group on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add XO Group to My Watchlist.
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.