The 10-second takeaway
For the quarter ended March 31 (Q1), j2 Global met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped.
Gross margins improved, operating margins grew, and net margins contracted.
j2 Global booked revenue of $86.7 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $86.1 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $73.4 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 $0.64. The six earnings estimates compiled by S&P Capital IQ averaged $0.62 per share. GAAP EPS of $0.60 for Q1 were 9.1% lower than the prior-year quarter's $0.66 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 81.7%, 320 basis points better than the prior-year quarter. Operating margin was 43.4%, 1,200 basis points better than the prior-year quarter. Net margin was 32.9%, 930 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $87.8 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $354.4 million. The average EPS estimate is $2.55.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 430 members out of 452 rating the stock outperform, and 22 members rating it underperform. Among 146 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give j2 Global a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on j2 Global is outperform, with an average price target of $32.50.
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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.