The 10-second takeaway
For the quarter ended March 31 (Q3), QuinStreet beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
QuinStreet booked revenue of $79.0 million. The five analysts polled by S&P Capital IQ predicted revenue of $77.5 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $93.0 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 -$0.05. The four earnings estimates compiled by S&P Capital IQ predicted -$0.02 per share. GAAP EPS were -$0.05 for Q3 versus $0.06 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 19.2%, 310 basis points worse than the prior-year quarter. Operating margin was 2.8%, 370 basis points worse than the prior-year quarter. Net margin was -2.7%, 580 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $76.8 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $304.9 million. The average EPS estimate is -$0.01.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 20 members out of 27 rating the stock outperform, and seven members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give QuinStreet a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QuinStreet is hold, with an average price target of $6.50.
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