The 10-second takeaway
For the quarter ended Dec. 31 (Q4), j2 Global 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 grew.
Margins dropped across the board.
j2 Global reported revenue of $102.0 million. The seven analysts polled by S&P Capital IQ expected revenue of $92.3 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $85.1 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 $0.70. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.61 per share. GAAP EPS of $0.65 for Q4 were 4.8% higher than the prior-year quarter's $0.62 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 81.7%, 110 basis points worse than the prior-year quarter. Operating margin was 41.4%, 380 basis points worse than the prior-year quarter. Net margin was 29.6%, 550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $99.6 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $415.6 million. The average EPS estimate is $2.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 452 members out of 477 rating the stock outperform, and 25 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 148 give j2 Global 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 j2 Global is outperform, with an average price target of $34.17.
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