The 10-second takeaway
For the quarter ended March 31 (Q1), ValueClick missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Gross margins grew, operating margins contracted, net margins contracted.
ValueClick booked revenue of $152.9 million. The 15 analysts polled by S&P Capital IQ looked for a top line of $157.7 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $116.5 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 $0.26. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. GAAP EPS of $0.26 for Q1 were 24% higher than the prior-year quarter's $0.21 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 61.4%, 600 basis points better than the prior-year quarter. Operating margin was 20.2%, 260 basis points worse than the prior-year quarter. Net margin was 14.1%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $157.4 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $696.5 million. The average EPS estimate is $1.33.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 559 members out of 597 rating the stock outperform, and 38 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 138 give ValueClick a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ValueClick is outperform, with an average price target of $21.97.
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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.