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ICG Group Posts a Surprise Profit

By Seth Jayson - Updated Apr 7, 2017 at 11:53AM

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Just the facts, Fool.

ICG Group (Nasdaq: ICGE) reported earnings on Nov. 5. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased. The profit was a surprise, as analysts had predicted a loss.

Gross margins dropped, operating margins contracted, net margins grew.

Revenue details
ICG Group recorded revenue of $51.2 million. The five analysts polled by S&P Capital IQ hoped for revenue of $51.3 million on the same basis. GAAP reported sales were 46% higher than the prior-year quarter's $35.1 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 $0.59. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.17 per share. GAAP EPS were $0.59 for Q3 against -$0.08 per share for the prior-year quarter.

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 39.6%, 30 basis points worse than the prior-year quarter. Operating margin was -15.7%, 1,630 basis points worse than the prior-year quarter. Net margin was 41.6%, 5,000 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $53.8 million. On the bottom line, the average EPS estimate is -$0.16.

Next year's average estimate for revenue is $187.3 million. The average EPS estimate is -$0.69.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 58 members out of 70 rating the stock outperform, and 12 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give ICG Group 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 ICG Group is buy, with an average price target of $13.00.

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