The 10-second takeaway
For the quarter ended March 31 (Q1), ReachLocal met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP loss per share contracted.
Gross margins shrank, operating margins grew, net margins increased.
ReachLocal booked revenue of $121.8 million. The eight analysts polled by S&P Capital IQ expected a top line of $122.7 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $104.0 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 -$0.02. The eight earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share. GAAP EPS were -$0.02 for Q1 compared to -$0.03 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 49.5%, 10 basis points worse than the prior-year quarter. Operating margin was 0.1%, 110 basis points better than the prior-year quarter. Net margin was -0.5%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $124.9 million. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $532.4 million. The average EPS estimate is -$0.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 68 members out of 74 rating the stock outperform, and six members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give ReachLocal 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 ReachLocal is outperform, with an average price target of $17.00.
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