The 10-second takeaway
For the quarter ended March 31 (Q3), Solera Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased. GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins shrank, net margins contracted.
Solera Holdings booked revenue of $214.6 million. The seven analysts polled by S&P Capital IQ looked for net sales of $213.2 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $198.0 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 $0.71. The eight earnings estimates compiled by S&P Capital IQ predicted $0.67 per share. Non-GAAP EPS of $0.71 for Q3 were 1.4% higher than the prior-year quarter's $0.70 per share. GAAP EPS of $0.31 for Q3 were 18% lower than the prior-year quarter's $0.38 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 68.9%, 30 basis points better than the prior-year quarter. Operating margin was 28.4%, 130 basis points worse than the prior-year quarter. Net margin was 10.0%, 350 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $216.1 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $834.3 million. The average EPS estimate is $2.67.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 59 members out of 74 rating the stock outperform, and 15 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Solera Holdings a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Solera Holdings is outperform, with an average price target of $61.64.
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