The 10-second takeaway
For the quarter ended March 31 (Q1), United Online met expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped.
Margins dropped across the board.
United Online reported revenue of $242.3 million. The three analysts polled by S&P Capital IQ foresaw a top line of $240.3 million on the same basis. GAAP reported sales were 0.3% higher than the prior-year quarter's $241.5 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 $0.21. The three earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. GAAP EPS of $0.12 for Q1 were 7.7% 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 45.9%, 410 basis points worse than the prior-year quarter. Operating margin was 8.7%, 90 basis points worse than the prior-year quarter. Net margin was 4.8%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $235.3 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $881.9 million. The average EPS estimate is $0.69.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 261 members out of 282 rating the stock outperform, and 21 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give United Online a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Online is outperform, with an average price target of $7.89.
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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. 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.