The 10-second takeaway
For the quarter ended March 31 (Q1), United Online beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
United Online booked revenue of $247.4 million. The three analysts polled by S&P Capital IQ anticipated revenue of $243.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.16. The three earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. Non-GAAP EPS of $0.16 for Q1 were 24% lower than the prior-year quarter's $0.21 per share. GAAP EPS of $0.09 for Q1 were 25% lower than the prior-year quarter's $0.12 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 42.8%, 310 basis points worse than the prior-year quarter. Operating margin was 5.3%, 340 basis points worse than the prior-year quarter. Net margin was 3.3%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $232.9 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $868.7 million. The average EPS estimate is $0.55.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 254 members out of 281 rating the stock outperform, and 27 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give United Online a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Online is buy, with an average price target of $7.74.
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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 owns shares of United Online. 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.