The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Dealertrack Technologies met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted significantly.
Gross margins grew, operating margins contracted, net margins dropped.
Dealertrack Technologies reported revenue of $101.8 million. The nine analysts polled by S&P Capital IQ expected a top line of $100.9 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $91.3 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 $0.31. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.29 per share. Non-GAAP EPS of $0.31 for Q4 were 29% higher than the prior-year quarter's $0.24 per share. GAAP EPS of $0.01 for Q4 were 99% lower than the prior-year quarter's $0.76 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 42.7%, 20 basis points better than the prior-year quarter. Operating margin was 1.5%, 280 basis points worse than the prior-year quarter. Net margin was 0.5%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $107.6 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $451.6 million. The average EPS estimate is $1.29.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dealertrack Technologies is outperform, with an average price target of $34.58.
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