The 10-second takeaway
For the quarter ended March 31 (Q1), Ebix missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved.
Margins shrank across the board.
Ebix tallied revenue of $43.8 million. The two analysts polled by S&P Capital IQ predicted revenue of $45.5 million on the same basis. GAAP reported sales were 9.4% higher than the prior-year quarter's $40.1 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 $0.40. The two earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. GAAP EPS of $0.40 for Q1 were 8.1% higher than the prior-year quarter's $0.37 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 79.4%, 680 basis points worse than the prior-year quarter. Operating margin was 41.8%, 170 basis points worse than the prior-year quarter. Net margin was 35.8%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $46.5 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $188.0 million. The average EPS estimate is $1.60.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,448 members out of 1,487 rating the stock outperform, and 39 members rating it underperform. Among 342 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 333 give Ebix a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ebix is buy, with an average price target of $29.00.
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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. Motley Fool newsletter services have recommended buying shares of Ebix. 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.