The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Active Network met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share grew.
Gross margins increased, operating margins shrank, net margins shrank.
Active Network logged revenue of $109.2 million. The eight analysts polled by S&P Capital IQ predicted a top line of $110.4 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $89.6 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 $0.05. The eight earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. GAAP EPS were -$0.10 for Q3 compared to -$0.03 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 56.6%, 110 basis points better than the prior-year quarter. Operating margin was -3.9%, 340 basis points worse than the prior-year quarter. Net margin was -5.5%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $102.0 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $428.4 million. The average EPS estimate is $0.01.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 26 members out of 36 rating the stock outperform, and 10 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Active Network 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 Active Network is buy, with an average price target of $18.67.
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