The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Charm Communications met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share increased significantly.
Margins dropped across the board.
Charm Communications recorded revenue of $80.3 million. The one analyst polled by S&P Capital IQ predicted net sales of $80.1 million on the same basis. GAAP reported sales were 42% higher than the prior-year quarter's $56.7 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 $0.36. The one earnings estimate compiled by S&P Capital IQ averaged $0.40 per share. GAAP EPS of $0.36 for Q4 were 29% higher than the prior-year quarter's $0.28 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 35.5%, 350 basis points worse than the prior-year quarter. Operating margin was 19.3%, 560 basis points worse than the prior-year quarter. Net margin was 18.4%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $77.3 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $282.4 million. The average EPS estimate is $1.47.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 13 members rating the stock outperform and three members rating it underperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), one gives Charm Communications a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Charm Communications is outperform, with an average price target of $14.
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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.
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