The 10-second takeaway
For the quarter ended March 31 (Q1), 51job missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank. GAAP earnings per share contracted.
Gross margins increased, operating margins dropped, net margins contracted.
51job reported revenue of $61.2 million. The three analysts polled by S&P Capital IQ hoped for revenue of $63.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.66. The three earnings estimates compiled by S&P Capital IQ anticipated $0.70 per share. Non-GAAP EPS of $0.66 for Q1 were 7.0% lower than the prior-year quarter's $0.71 per share. GAAP EPS of $0.59 for Q1 were 7.8% lower than the prior-year quarter's $0.64 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 72.8%, 40 basis points better than the prior-year quarter. Operating margin was 31.7%, 430 basis points worse than the prior-year quarter. Net margin was 29.8%, 330 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $64.4 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $271.9 million. The average EPS estimate is $3.17.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 377 members out of 396 rating the stock outperform, and 19 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give 51job 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 51job is outperform, with an average price target of $68.17.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends 51job. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.