The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Solera Holdings beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Solera Holdings booked revenue of $209.2 million. The eight analysts polled by S&P Capital IQ expected revenue of $202.0 million on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $195.1 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 $0.69. The nine earnings estimates compiled by S&P Capital IQ predicted $0.64 per share. GAAP EPS of $0.28 for Q2 were 28% lower than the prior-year quarter's $0.39 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 68.6%, 70 basis points worse than the prior-year quarter. Operating margin was 28.7%, 70 basis points worse than the prior-year quarter. Net margin was 9.4%, 510 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $207.6 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $816.5 million. The average EPS estimate is $2.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 59 members out of 74 rating the stock outperform, and 15 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Solera Holdings a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Solera Holdings is outperform, with an average price target of $52.00.
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