The 10-second takeaway
For the quarter ended June 30 (Q2), Ancestry.com beat slightly on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins dropped, and net margins increased.
Ancestry.com logged revenue of $119.1 million. The six analysts polled by S&P Capital IQ predicted sales of $117.3 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $101.3 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 $0.44. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.46 per share. GAAP EPS of $0.44 for Q2 were 33% higher than the prior-year quarter's $0.33 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 83.2%, 110 basis points worse than the prior-year quarter. Operating margin was 24.7%, 140 basis points worse than the prior-year quarter. Net margin was 16.8%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $119.3 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $466.2 million. The average EPS estimate is $1.80.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 359 members out of 399 rating the stock outperform, and 40 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Ancestry.com a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ancestry.com is outperform, with an average price target of $36.56.
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