The 10-second takeaway
For the quarter ended Sep. 30 (Q3), NeuStar met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Gross margins grew, operating margins shrank, net margins contracted.
NeuStar reported revenue of $211.2 million. The 13 analysts polled by S&P Capital IQ anticipated revenue of $210.0 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $152.5 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 $0.90. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.72 per share. GAAP EPS of $0.68 for Q3 were 33% higher 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.
For the quarter, gross margin was 78.1%, 50 basis points better than the prior-year quarter. Operating margin was 35.3%, 280 basis points worse than the prior-year quarter. Net margin was 21.7%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $214.7 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $830.7 million. The average EPS estimate is $2.85.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 254 members out of 267 rating the stock outperform, and 13 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give NeuStar a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NeuStar is outperform, with an average price target of $43.64.
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