Phoenix New Media Limited
The 10-second takeaway
For the quarter ended March 31 (Q1), Phoenix New Media Limited met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Margins grew across the board.
Phoenix New Media Limited reported revenue of $37.8 million. The two analysts polled by S&P Capital IQ predicted a top line of $37.4 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $26.2 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 $0.07. The two earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. GAAP EPS were $0.06 for Q1 against -$1.97 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.5%, 1,040 basis points better than the prior-year quarter. Operating margin was 11.4%, 2,550 basis points better than the prior-year quarter. Net margin was 13.8%, 2,910 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $45.4 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $197.8 million. The average EPS estimate is $0.41.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with four members out of 14 rating the stock outperform, and 10 members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Phoenix New Media Limited is buy, with an average price target of $10.13.
Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Phoenix New Media Limited on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Phoenix New Media Limited to My Watchlist.
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.