The 10-second takeaway
For the quarter ended March 31 (Q4), Advisory Board missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins expanded, net margins improved.
Advisory Board logged revenue of $100.5 million. The six analysts polled by S&P Capital IQ expected to see revenue of $102.1 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $77.2 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 $0.45. The five earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. GAAP EPS of $0.46 for Q4 were 48% higher than the prior-year quarter's $0.31 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 45.3%, 120 basis points worse than the prior-year quarter. Operating margin was 11.0%, 150 basis points better than the prior-year quarter. Net margin was 8.1%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $104.6 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $442.7 million. The average EPS estimate is $2.23.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 40 members out of 73 rating the stock outperform, and 33 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Advisory Board a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advisory Board is outperform, with an average price target of $81.86.
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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.