The 10-second takeaway
For the quarter ended March 31 (Q1), DealerTrack Holdings beat expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Gross margins dropped, operating margins grew, net margins contracted.
DealerTrack Holdings booked revenue of $91.6 million. The eight analysts polled by S&P Capital IQ wanted to see a top line of $84.6 million on the same basis. GAAP reported sales were 19% 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 $0.22. The eight earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.39 for Q1 were 34% lower than the prior-year quarter's $0.59 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 41.4%, 310 basis points worse than the prior-year quarter. Operating margin was 1.5%, 280 basis points better than the prior-year quarter. Net margin was 18.5%, 1,350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $94.1 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $369.9 million. The average EPS estimate is $1.03.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 66 members out of 94 rating the stock outperform, and 28 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give DealerTrack Holdings a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DealerTrack Holdings is hold, with an average price target of $31.38.
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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.