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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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 Ebix. 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.