The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RealPage missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share didn't change.
Gross margins improved, operating margins contracted, and net margins expanded.
RealPage reported revenue of $71.1 million. The eight analysts polled by S&P Capital IQ predicted sales of $74.2 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $54.1 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 $0.10. The eight earnings estimates compiled by S&P Capital IQ forecast $0.10 per share on the same basis. GAAP EPS of $0 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 61.1%, 260 basis points better than the prior-year quarter. Operating margin was 0.5%, 160 basis points worse than the prior-year quarter. Net margin was 0.3%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $73.7 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $323.2 million. The average EPS estimate is $0.48.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 19 members out of 33 rating the stock outperform, and 14 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give RealPage a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RealPage is outperform, with an average price target of $31.33.
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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.