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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