The 10-second takeaway
For the quarter ended June 30 (Q2), OpenTable met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted.
Gross margins expanded, operating margins shrank, and net margins dropped.
OpenTable booked revenue of $39.6 million. The 13 analysts polled by S&P Capital IQ expected to see a top line of $39.4 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $34.3 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 $0.42. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. GAAP EPS of $0.25 for Q2 were 3.8% lower than the prior-year quarter's $0.26 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 73.9%, 210 basis points better than the prior-year quarter. Operating margin was 22.4%, 540 basis points worse than the prior-year quarter. Net margin was 14.5%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $39.9 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $162.0 million. The average EPS estimate is $1.58.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 228 members rating the stock outperform, and 224 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give OpenTable a green thumbs-up, and 79 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OpenTable is hold, with an average price target of $44.38.
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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. The Motley Fool has the following options: short OCT 2012 $40.00 calls on OpenTable and long OCT 2012 $40.00 puts on OpenTable. Motley Fool newsletter services recommend OpenTable. 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.