The 10-second takeaway
For the quarter ended March 31 (Q3), QuinStreet missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins dropped across the board.
QuinStreet chalked up revenue of $93.0 million. The eight analysts polled by S&P Capital IQ predicted revenue of $102.6 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $107.7 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 $0.06. The eight earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS of $0.06 for Q3 were 54% lower than the prior-year quarter's $0.13 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 22.3%, 470 basis points worse than the prior-year quarter. Operating margin was 6.5%, 470 basis points worse than the prior-year quarter. Net margin was 3.1%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $101.5 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $397.1 million. The average EPS estimate is $0.44.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 21 members out of 27 rating the stock outperform, and six members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give QuinStreet a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QuinStreet is hold, with an average price target of $11.89.
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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.