The 10-second takeaway
For the quarter ended March 31 (Q1), Dolan met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to zero.
Margins dropped across the board.
Dolan reported revenue of $66.7 million. The five analysts polled by S&P Capital IQ hoped for a top line of $67.6 million on the same basis. GAAP-reported sales were 8% lower than the prior-year quarter's $72.5 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 $0.13. The five earnings estimates compiled by S&P Capital IQ forecast $0.12 per share. GAAP EPS shrank to zero from the prior-year quarter's $0.14.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.2%, 190 basis points worse than the prior-year quarter. Operating margin was 2.1%, 680 basis points worse than the prior-year quarter. Net margin was 0.3%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $72.7 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $302.9 million. The average EPS estimate is $0.92.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 73 members rating the stock outperform and 15 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Dolan a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dolan is outperform, with an average price target of $11.75.
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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.