The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ebix met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share grew.
Gross margins expanded, operating margins contracted, net margins dropped.
Ebix booked revenue of $54.0 million. The two analysts polled by S&P Capital IQ hoped for a top line of $54.3 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $44.1 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 $0.48. The two earnings estimates compiled by S&P Capital IQ forecast $0.45 per share. GAAP EPS of $0.48 for Q4 were 9.1% higher than the prior-year quarter's $0.44 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 80.7%, 40 basis points better than the prior-year quarter. Operating margin was 37.5%, 10 basis points worse than the prior-year quarter. Net margin was 34.7%, 460 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $54.8 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $223.3 million. The average EPS estimate is $1.86.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,540 members out of 1,581 rating the stock outperform, and 41 members rating it underperform. Among 342 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 336 give Ebix a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ebix is buy, with an average price target of $28.50.
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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 recommends Ebix. The Motley Fool owns shares of Ebix. 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.