The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Renren beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share.
Margins contracted across the board.
Renren chalked up revenue of $50.4 million. The eight analysts polled by S&P Capital IQ anticipated sales of $49.7 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $34.2 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 -$0.03. The six earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. GAAP EPS were -$0.04 for Q3 compared to $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 61.4%, 1,900 basis points worse than the prior-year quarter. Operating margin was -41.0%, 2,220 basis points worse than the prior-year quarter. Net margin was -30.6%, 2,710 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $51.1 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $178.1 million. The average EPS estimate is -$0.18.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 175 members out of 240 rating the stock outperform, and 65 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Renren a green thumbs-up, and 26 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Renren is hold, with an average price target of $4.40.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.