The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Demand Media's revenues will increase 19.3% and EPS will increase 37.5%.
The average estimate for revenue is $100.7 million. On the bottom line, the average EPS estimate is $0.11.
Last quarter, Demand Media reported revenue of $98.1 million. GAAP reported sales were 20% higher than the prior-year quarter's $81.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.11. GAAP EPS were $0.04 for Q3 compared to -$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 preceding quarter, gross margin was 52.6%, 180 basis points better than the prior-year quarter. Operating margin was 5.3%, 930 basis points better than the prior-year quarter. Net margin was 3.2%, 830 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $372.8 million. The average EPS estimate is $0.38.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 33 members out of 66 rating the stock outperform, and 33 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Demand Media a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Demand Media is hold, with an average price target of $12.50.
Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Demand Media on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Demand Media to My Watchlist.
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 position in any of the stocks mentioned. 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.