The 10-second takeaway
For the quarter ended March 31 (Q1), Ebix missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share expanded.
Gross margins increased, operating margins dropped, net margins contracted.
Ebix reported revenue of $52.6 million. The two analysts polled by S&P Capital IQ predicted a top line of $54.2 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $43.8 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 $0.45. The two earnings estimates compiled by S&P Capital IQ predicted $0.44 per share. GAAP EPS of $0.45 for Q1 were 13% higher than the prior-year quarter's $0.40 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 81.2%, 180 basis points better than the prior-year quarter. Operating margin was 36.7%, 290 basis points worse than the prior-year quarter. Net margin was 33.0%, 280 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $54.6 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $218.9 million. The average EPS estimate is $1.80.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,464 members out of 1,506 rating the stock outperform, and 42 members rating it underperform. Among 307 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 300 give Ebix a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ebix is buy, with an average price target of $26.00.
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