Xueda Education Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Xueda Education Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share shrank significantly. The profit was a surprise, as analysts had predicted a loss.
Margins shrank across the board.
Xueda Education Group logged revenue of $67.2 million. The six analysts polled by S&P Capital IQ anticipated net sales of $61.2 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $50.8 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 $0.01. The four earnings estimates compiled by S&P Capital IQ forecast -$0.04 per share. GAAP EPS of $0.01 for Q1 were 88% lower than the prior-year quarter's $0.08 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 25.0%, 890 basis points worse than the prior-year quarter. Operating margin was -1.0%, 1,240 basis points worse than the prior-year quarter. Net margin was 0.9%, 1,070 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $83.9 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $281.9 million. The average EPS estimate is $0.13.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 13 members out of 21 rating the stock outperform, and eight members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Xueda Education Group a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Xueda Education Group is outperform, with an average price target of $4.26.
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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.