The 10-second takeaway
For the quarter ended Sep. 30 (Q3), DealerTrack Holdings met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
DealerTrack Holdings notched revenue of $99.1 million. The 10 analysts polled by S&P Capital IQ anticipated sales of $99.5 million on the same basis. GAAP reported sales were 3.4% higher than the prior-year quarter's $95.8 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 $0.28. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.30 per share. GAAP EPS were -$0.07 for Q3 against $0.13 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 44.0%, 90 basis points worse than the prior-year quarter. Operating margin was 5.5%, 190 basis points worse than the prior-year quarter. Net margin was -3.0%, 860 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $96.5 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $384.2 million. The average EPS estimate is $1.09.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 64 members out of 89 rating the stock outperform, and 25 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give DealerTrack Holdings 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 DealerTrack Holdings is outperform, with an average price target of $35.00.
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