The 10-second takeaway
For the quarter ended Dec. 31 (Q4), United Online beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
United Online reported revenue of $219.0 million. The three analysts polled by S&P Capital IQ expected to see a top line of $216.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.14. The three earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. Non-GAAP EPS of $0.14 for Q4 were 44% lower than the prior-year quarter's $0.25 per share. GAAP EPS were -$0.14 for Q4 compared to $0.14 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 45.8%, 420 basis points worse than the prior-year quarter. Operating margin was 5.8%, 730 basis points worse than the prior-year quarter. Net margin was -5.7%, 1,160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $237.9 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $867.5 million. The average EPS estimate is $0.62.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 254 members out of 281 rating the stock outperform, and 27 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give United Online a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Online is buy, with an average price target of $7.41.
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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 owns shares of United Online. 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.