The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MDC Partners beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP loss per share dropped.
Gross margins grew, operating margins dropped, net margins grew.
MDC Partners chalked up revenue of $294.6 million. The seven analysts polled by S&P Capital IQ predicted net sales of $288.5 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $254.3 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 -$0.79. The six earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS were -$0.79 for Q4 against -$1.97 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 33.8%, 520 basis points better than the prior-year quarter. Operating margin was -2.4%, 60 basis points worse than the prior-year quarter. Net margin was -8.3%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $262.0 million. On the bottom line, the average EPS estimate is -$0.34.
Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is -$0.16.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 28 members out of 41 rating the stock outperform, and 13 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give MDC Partners a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MDC Partners is buy, with an average price target of $16.43.
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