The 10-second takeaway
For the quarter ended Sep. 30 (Q3), 51job beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins expanded, operating margins contracted, net margins grew.
51job logged revenue of $59.4 million. The two analysts polled by S&P Capital IQ anticipated a top line of $56.6 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $51.1 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 $0.68. The one earnings estimate compiled by S&P Capital IQ averaged $0.65 per share. GAAP EPS of $0.61 for Q3 were 17% higher than the prior-year quarter's $0.52 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 72.5%, 10 basis points better than the prior-year quarter. Operating margin was 32.7%, 170 basis points worse than the prior-year quarter. Net margin was 31.5%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $60.1 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $232.6 million. The average EPS estimate is $2.69.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 382 members out of 401 rating the stock outperform, and 19 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give 51job a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 51job is outperform, with an average price target of $53.05.
- Add 51job to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 51job. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.