The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MDC Partners missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP loss per share dropped. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins increased across the board.
MDC Partners recorded revenue of $267.8 million. The six analysts polled by S&P Capital IQ expected a top line of $273.5 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $238.2 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 $0.02. The five earnings estimates compiled by S&P Capital IQ averaged -$0.04 per share. GAAP EPS were -$0.47 for Q3 against -$0.67 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.5%, 610 basis points better than the prior-year quarter. Operating margin was 0.5%, 200 basis points better than the prior-year quarter. Net margin was -5.4%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $295.6 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $1.07 billion. The average EPS estimate is -$1.06.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 27 members out of 39 rating the stock outperform, and 12 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give MDC Partners 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 MDC Partners is buy, with an average price target of $16.83.
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