The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Entravision Communications beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew. GAAP earnings per share expanded.
Margins grew across the board.
Entravision Communications booked revenue of $63.8 million. The two analysts polled by S&P Capital IQ expected a top line of $60.8 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $50.0 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 $0.11. The three earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. Non-GAAP EPS were $0.11 for Q4 against -$0.02 per share for the prior-year quarter. GAAP EPS were $0.09 for Q4 compared to -$0.03 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 61.6%, 700 basis points better than the prior-year quarter. Operating margin was 32.4%, much better than the prior-year quarter. Net margin was 12.1%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $48.8 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $217.9 million. The average EPS estimate is $0.13.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 89 members out of 103 rating the stock outperform, and 14 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Entravision Communications a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Entravision Communications is buy, with an average price target of $2.70.
Internet software and mass media are being consumed in radically different ways, on new and increasingly mobile devices. Is Entravision Communications on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Entravision Communications to My Watchlist.
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 has no position in any of the stocks mentioned. 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.