The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Bankrate met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins dropped, net margins dropped.
Bankrate notched revenue of $116.8 million. The nine analysts polled by S&P Capital IQ expected net sales of $116.3 million on the same basis. GAAP reported sales were 3.4% higher than the prior-year quarter's $112.9 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 $0.03. The six earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. GAAP EPS of $0.03 for Q3 were 57% lower than the prior-year quarter's $0.07 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 67.7%, 140 basis points better than the prior-year quarter. Operating margin was 11.6%, 840 basis points worse than the prior-year quarter. Net margin was 2.2%, 410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $107.0 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $469.3 million. The average EPS estimate is $0.32.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 18 members out of 31 rating the stock outperform, and 13 members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Bankrate a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bankrate is outperform, with an average price target of $23.00.
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