The 10-second takeaway
For the quarter ended March 31 (Q3), TeleNav beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
TeleNav booked revenue of $57.8 million. The seven analysts polled by S&P Capital IQ expected sales of $53.4 million on the same basis. GAAP reported sales were 1.2% higher than the prior-year quarter's $57.1 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 $0.17. The five earnings estimates compiled by S&P Capital IQ anticipated $0.13 per share. GAAP EPS of $0.17 for Q3 were 32% lower than the prior-year quarter's $0.25 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 74.4%, 330 basis points worse than the prior-year quarter. Operating margin was 18.7%, 1,230 basis points worse than the prior-year quarter. Net margin was 12.7%, 680 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $50.6 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $211.6 million. The average EPS estimate is $0.71.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 116 members out of 119 rating the stock outperform, and three members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give TeleNav a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TeleNav is hold, with an average price target of $8.88.
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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. He is the 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 don't 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.