The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Advisory Board beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew significantly.
Gross margins increased, operating margins dropped, net margins increased.
Advisory Board reported revenue of $110.8 million. The 10 analysts polled by S&P Capital IQ expected revenue of $109.3 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $92.9 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 $0.31. The eight earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. GAAP EPS of $0.21 for Q2 were 40% higher than the prior-year quarter's $0.15 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 48.5%, 250 basis points better than the prior-year quarter. Operating margin was 11.0%, 50 basis points worse than the prior-year quarter. Net margin was 6.8%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $115.7 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $448.0 million. The average EPS estimate is $1.27.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 41 members out of 73 rating the stock outperform, and 32 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Advisory Board a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advisory Board is outperform, with an average price target of $46.38.
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