The 10-second takeaway
For the quarter ended March 31 (Q1), Arbitron met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Margins expanded across the board.
Arbitron reported revenue of $106.4 million. The six analysts polled by S&P Capital IQ looked for a top line of $105.5 million on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $100.9 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 $0.64. The five earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. GAAP EPS of $0.64 for Q1 were 8.5% higher than the prior-year quarter's $0.59 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 55.4%, 70 basis points better than the prior-year quarter. Operating margin was 29.3%, 90 basis points better than the prior-year quarter. Net margin was 16.7%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $100.5 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $445.1 million. The average EPS estimate is $2.23.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 51 members out of 63 rating the stock outperform, and 12 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Arbitron a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arbitron is outperform, with an average price target of $42.33.
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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.