The 10-second takeaway
For the quarter ended Sep. 30 (Q2), MakeMyTrip whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share.
Margins contracted across the board.
MakeMyTrip booked revenue of $20.2 million. The five analysts polled by S&P Capital IQ anticipated net sales of $23.7 million on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $43.8 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 $0.03. The three earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were -$0.03 for Q2 versus $0.00 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 27.6%, 580 basis points worse than the prior-year quarter. Operating margin was -6.2%, 830 basis points worse than the prior-year quarter. Net margin was -2.5%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $26.4 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $90.2 million. The average EPS estimate is $0.20.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 45 members out of 65 rating the stock outperform, and 20 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give MakeMyTrip 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 MakeMyTrip is outperform, with an average price target of $20.60.
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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. TMFDisclosureHere