The 10-second takeaway
For the quarter ended March 31 (Q1), HomeAway beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins expanded, net margins increased.
HomeAway booked revenue of $79.5 million. The 14 analysts polled by S&P Capital IQ predicted revenue of $78.7 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $64.1 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 $0.06. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. GAAP EPS of $0.06 for Q1 were 100% higher than the prior-year quarter's $0.03 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 83.3%, 30 basis points worse than the prior-year quarter. Operating margin was 10.3%, 430 basis points better than the prior-year quarter. Net margin was 6.7%, 300 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $86.6 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $341.3 million. The average EPS estimate is $0.29.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 104 members out of 144 rating the stock outperform, and 40 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give HomeAway a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HomeAway is outperform, with an average price target of $31.33.
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