The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Blucora beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Blucora logged revenue of $92.9 million. The four analysts polled by S&P Capital IQ hoped for sales of $88.9 million on the same basis. GAAP reported sales were 65% higher than the prior-year quarter's $56.3 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 $0.25. The one earnings estimate compiled by S&P Capital IQ anticipated $0.21 per share. GAAP EPS were -$0.06 for Q3 versus $0.05 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 24.7%, 640 basis points worse than the prior-year quarter. Operating margin was 4.0%, 280 basis points worse than the prior-year quarter. Net margin was -2.6%, 630 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $88.8 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $401.1 million. The average EPS estimate is $1.19.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 132 members out of 169 rating the stock outperform, and 37 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Blucora a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Blucora is outperform, with an average price target of $18.60.
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