The 10-second takeaway
For the quarter ended June 30 (Q2), Renren beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share.
Margins shrank across the board.
Renren booked revenue of $44.8 million. The eight analysts polled by S&P Capital IQ predicted sales of $42.3 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $30.4 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 -$0.06. The six earnings estimates compiled by S&P Capital IQ averaged -$0.04 per share. GAAP EPS were -$0.06 for Q2 against $0.00 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 62.3%, 1,870 basis points worse than the prior-year quarter. Operating margin was -49.5%, 5,170 basis points worse than the prior-year quarter. Net margin was -55.6%, 5,810 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $51.9 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $177.6 million. The average EPS estimate is -$0.14.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 185 members out of 255 rating the stock outperform, and 70 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Renren a green thumbs-up, and 27 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Renren is hold, with an average price target of $4.88.
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