Ambow Education Holding
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ambow Education Holding beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted to a loss.
Gross margins increased, operating margins contracted, and net margins dropped.
Ambow Education Holding recorded revenue of $89.0 million. The five analysts polled by S&P Capital IQ foresaw a top line of $84.6 million on the same basis. GAAP reported sales were 40% higher than the prior-year quarter's $63.7 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 $0.24. The four earnings estimates compiled by S&P Capital IQ predicted $0.22 per share on the same basis. GAAP EPS were -$0.09 for Q4 versus $0.19 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 62.9%, 10 basis points better than the prior-year quarter. Operating margin was 22.6%, 410 basis points worse than the prior-year quarter. Net margin was -7.4%, 2,900 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $63.9 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $345.4 million. The average EPS estimate is $0.75.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 20 members out of 28 rating the stock outperform, and eight members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Ambow Education Holding a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ambow Education Holding is outperform, with an average price target of $10.56.
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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.