The 10-second takeaway
For the quarter ended Dec. 31 (Q4), 51job beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share increased significantly.
Margins grew across the board.
51job reported revenue of $58.7 million. The one analyst polled by S&P Capital IQ expected a top line of $57.9 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $43.3 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 $0.61. The two earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.61 for Q4 were 79% higher than the prior-year quarter's $0.34 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 71.2%, 580 basis points better than the prior-year quarter. Operating margin was 31.8%, 460 basis points better than the prior-year quarter. Net margin was 32.3%, 890 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $58.3 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $253.9 million. The average EPS estimate is $2.60.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 388 members rating the stock outperform and 23 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give 51job a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 51job is outperform, with an average price target of $64.93.
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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 51job. 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.