The 10-second takeaway
For the quarter ended March 31 (Q1), Dealertrack Technologies beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted to zero.
Gross margins grew, operating margins dropped, net margins shrank.
Dealertrack Technologies reported revenue of $109.1 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $106.6 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $91.6 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 $0.27. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. Non-GAAP EPS of $0.27 for Q1 were 23% higher than the prior-year quarter's $0.22 per share. GAAP EPS dropped to zero from the prior-year quarter's $0.39.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.1%, 70 basis points better than the prior-year quarter. Operating margin was 0.7%, 80 basis points worse than the prior-year quarter. Net margin was 0.0%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $113.9 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $453.1 million. The average EPS estimate is $1.23.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dealertrack Technologies is outperform, with an average price target of $35.17.
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