TeleNav Beats on Both Top and Bottom Lines

Just the facts, Fool.

Seth Jayson
Seth Jayson
Sep 10, 2012 at 12:00AM
Other

TeleNav (Nasdaq: TNAV) reported earnings on Sep. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q4), TeleNav beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
TeleNav reported revenue of $54.8 million. The seven analysts polled by S&P Capital IQ expected a top line of $53.3 million on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $54.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.15. The five earnings estimates compiled by S&P Capital IQ anticipated $0.13 per share. GAAP EPS of $0.16 for Q4 were 16% lower than the prior-year quarter's $0.19 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 77.6%, 340 basis points worse than the prior-year quarter. Operating margin was 18.3%, 920 basis points worse than the prior-year quarter. Net margin was 12.1%, 450 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $45.5 million. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $191.9 million. The average EPS estimate is $0.05.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 123 members out of 127 rating the stock outperform, and four members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give TeleNav a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TeleNav is hold, with an average price target of $7.50.

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