The 10-second takeaway
For the quarter ended Sep. 30 (Q3), j2 Global beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins expanded, net margins expanded.
j2 Global logged revenue of $93.2 million. The eight analysts polled by S&P Capital IQ hoped for sales of $89.6 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $86.0 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 $0.65. The eight earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. GAAP EPS of $0.69 for Q3 were 28% higher than the prior-year quarter's $0.54 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 82.5%, 10 basis points worse than the prior-year quarter. Operating margin was 45.3%, 290 basis points better than the prior-year quarter. Net margin was 33.9%, 430 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $89.8 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $356.4 million. The average EPS estimate is $2.58.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 444 members out of 469 rating the stock outperform, and 25 members rating it underperform. Among 143 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 give j2 Global 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 j2 Global is outperform, with an average price target of $32.71.
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