Financial Engines
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Financial Engines beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins grew, net margins expanded.
Revenue details
Financial Engines booked revenue of $48.4 million. The five analysts polled by S&P Capital IQ hoped for a top line of $46.4 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $35.7 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 $0.10. The five earnings estimates compiled by S&P Capital IQ anticipated $0.11 per share. GAAP EPS of $0.10 for Q3 were 43% higher than the prior-year quarter's $0.07 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 61.2%, 260 basis points worse than the prior-year quarter. Operating margin was 15.5%, 70 basis points better than the prior-year quarter. Net margin was 9.9%, 50 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $51.1 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $183.3 million. The average EPS estimate is $0.47.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 21 members out of 26 rating the stock outperform, and five members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Financial Engines a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Financial Engines is outperform, with an average price target of $26.00.
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