The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Renren beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP loss per share grew. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Renren chalked up revenue of $48.8 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $46.4 million on the same basis. GAAP reported sales were 49% higher than the prior-year quarter's $32.8 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 -$0.04. The five earnings estimates compiled by S&P Capital IQ forecast -$0.06 per share. Non-GAAP EPS were -$0.04 for Q4 against -$0.01 per share for the prior-year quarter. GAAP EPS were -$0.06 for Q4 against $0.11 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 63.5%, 700 basis points worse than the prior-year quarter. Operating margin was -58.0%, 500 basis points worse than the prior-year quarter. Net margin was -43.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $47.0 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $251.2 million. The average EPS estimate is -$0.18.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 180 members out of 240 rating the stock outperform, and 60 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Renren a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Renren is hold, with an average price target of $4.07.
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