The 10-second takeaway
For the quarter ended March 31 (Q1), Support.com beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded. GAAP earnings per share grew.
Margins expanded across the board.
Support.com notched revenue of $20.2 million. The four analysts polled by S&P Capital IQ looked for revenue of $19.9 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $17.6 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 four earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. Non-GAAP EPS were $0.06 for Q1 versus -$0.07 per share for the prior-year quarter. GAAP EPS were $0.04 for Q1 against -$0.09 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 52.4%, much better than the prior-year quarter. Operating margin was 9.7%, much better than the prior-year quarter. Net margin was 9.3%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $19.8 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $85.3 million. The average EPS estimate is $0.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 55 members out of 66 rating the stock outperform, and 11 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Support.com a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Support.com is buy, with an average price target of $5.81.
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