The 10-second takeaway
For the quarter ended March 31 (Q1), Millennial Media met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP loss per share dropped. GAAP loss per share dropped.
Margins grew across the board.
Millennial Media reported revenue of $49.4 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $49.1 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $32.9 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 -$0.02 per share. Non-GAAP EPS were -$0.02 for Q1 versus -$0.05 per share for the prior-year quarter. GAAP EPS were -$0.05 for Q1 compared to -$0.32 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 41.6%, 210 basis points better than the prior-year quarter. Operating margin was -7.5%, 160 basis points better than the prior-year quarter. Net margin was -7.6%, 450 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $59.3 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $274.9 million. The average EPS estimate is $0.09.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 46 members out of 57 rating the stock outperform, and 11 members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Millennial Media 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 Millennial Media is outperform, with an average price target of $17.14.
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