The 10-second takeaway
For the quarter ended Dec. 31 (Q2), QuinStreet missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
QuinStreet logged revenue of $71.8 million. The seven analysts polled by S&P Capital IQ foresaw sales of $77.2 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $90.5 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 $0.01. The seven earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS were -$1.48 for Q2 against $0.09 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 14.0%, 1,040 basis points worse than the prior-year quarter. Operating margin was -2.8%, 1,220 basis points worse than the prior-year quarter. Net margin was -88.5%, 9,340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $78.2 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $305.8 million. The average EPS estimate is -$0.01.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 21 members out of 28 rating the stock outperform, and seven members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give QuinStreet a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QuinStreet is hold, with an average price target of $6.84.
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