The 10-second takeaway
For the quarter ended Dec. 31 (Q4), HomeAway met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew.
Gross margins shrank, operating margins expanded, net margins grew.
HomeAway reported revenue of $71.6 million. The 12 analysts polled by S&P Capital IQ expected sales of $70.9 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $58.5 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 $0.05. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.04 per share. GAAP EPS of $0.05 for Q4 were much higher than the prior-year quarter's $0.00 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 82.9%, 190 basis points worse than the prior-year quarter. Operating margin was 10.4%, 160 basis points better than the prior-year quarter. Net margin was 6.4%, 680 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $77.5 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $337.4 million. The average EPS estimate is $0.32.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 89 members out of 124 rating the stock outperform, and 35 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give HomeAway a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HomeAway is outperform, with an average price target of $27.70.
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