The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Yandex beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins dropped across the board.
Yandex booked revenue of $292.8 million. The six analysts polled by S&P Capital IQ expected to see sales of $285.7 million on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $200.6 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 $0.29. The three earnings estimates compiled by S&P Capital IQ averaged $0.28 per share. Non-GAAP EPS of $0.29 for Q4 were 38% higher than the prior-year quarter's $0.21 per share. GAAP EPS of $0.26 for Q4 were 30% higher than the prior-year quarter's $0.20 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 76.5%, 40 basis points worse than the prior-year quarter. Operating margin was 35.2%, 520 basis points worse than the prior-year quarter. Net margin was 30.5%, 250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $259.4 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $1.24 billion. The average EPS estimate is $1.11.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 151 members out of 164 rating the stock outperform, and 13 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Yandex a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Yandex is outperform, with an average price target of $29.33.
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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 recommends Yandex. 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.