GeoEye Beats on EPS But GAAP Results Lag

Just the facts, Fool.

Seth Jayson
Seth Jayson
Nov 6, 2012 at 12:00AM
Other

GeoEye (Nasdaq: GEOY) reported earnings on Nov. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), GeoEye missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
GeoEye reported revenue of $87.1 million. The five analysts polled by S&P Capital IQ foresaw revenue of $90.6 million on the same basis. GAAP reported sales were 1.6% higher than the prior-year quarter's $85.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.53. The four earnings estimates compiled by S&P Capital IQ averaged $0.45 per share. GAAP EPS of $0.33 for Q3 were 35% lower than the prior-year quarter's $0.51 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 64.2%, 260 basis points worse than the prior-year quarter. Operating margin was 17.4%, 1,030 basis points worse than the prior-year quarter. Net margin was 11.0%, 540 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $90.6 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $359.2 million. The average EPS estimate is $2.07.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 472 members out of 488 rating the stock outperform, and 16 members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give GeoEye a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on GeoEye is outperform, with an average price target of $26.50.