The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ValueClick missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.
Gross margins shrank, operating margins increased, net margins dropped.
ValueClick booked revenue of $160.9 million. The 15 analysts polled by S&P Capital IQ predicted sales of $165.6 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $136.0 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 $0.39. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.36 per share. GAAP EPS of $0.30 for Q3 were 36% lower than the prior-year quarter's $0.47 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 60.8%, 560 basis points worse than the prior-year quarter. Operating margin was 21.3%, 80 basis points better than the prior-year quarter. Net margin was 14.6%, 1,330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $204.0 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $681.4 million. The average EPS estimate is $1.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 556 members out of 591 rating the stock outperform, and 35 members rating it underperform. Among 142 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 128 give ValueClick a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ValueClick is outperform, with an average price target of $19.94.
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