The 10-second takeaway
For the quarter ended June 30 (Q4), Solera Holdings beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins contracted, net margins improved.
Solera Holdings notched revenue of $198.4 million. The eight analysts polled by S&P Capital IQ expected sales of $195.1 million on the same basis. GAAP reported sales were 8.9% higher than the prior-year quarter's $182.1 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 $0.64. The eight earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.30 for Q4 were 25% higher than the prior-year quarter's $0.24 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 69.3%, 20 basis points worse than the prior-year quarter. Operating margin was 28.5%, 60 basis points worse than the prior-year quarter. Net margin was 10.5%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $197.3 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $802.9 million. The average EPS estimate is $2.67.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 57 members out of 72 rating the stock outperform, and 15 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Solera Holdings 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 Solera Holdings is outperform, with an average price target of $49.69.
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