The 10-second takeaway
For the quarter ended March 31 (Q1), Financial Engines beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased significantly.
Gross margins dropped, operating margins grew, net margins increased.
Financial Engines logged revenue of $53.9 million. The four analysts polled by S&P Capital IQ wanted to see revenue of $53.1 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $41.7 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 $0.12. The four earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.12 for Q1 were 71% higher than the prior-year quarter's $0.07 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 63.0%, 30 basis points worse than the prior-year quarter. Operating margin was 17.6%, 390 basis points better than the prior-year quarter. Net margin was 11.5%, 310 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $56.8 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $230.9 million. The average EPS estimate is $0.68.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 24 members out of 31 rating the stock outperform, and seven members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Financial Engines a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Financial Engines is outperform, with an average price target of $35.50.
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