The 10-second takeaway
For the quarter ended March 31 (Q1), Renren beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share increased to zero. GAAP loss per share contracted.
Margins increased across the board.
Renren logged revenue of $46.6 million. The eight analysts polled by S&P Capital IQ expected to see revenue of $45.2 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $32.1 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 $0.00. The seven earnings estimates compiled by S&P Capital IQ averaged -$0.06 per share. Non-GAAP EPS dropped to zero from the prior-year quarter's $0.00. GAAP EPS were -$0.01 for Q1 against -$0.03 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 64.4%, 330 basis points better than the prior-year quarter. Operating margin was -58.9%, 520 basis points better than the prior-year quarter. Net margin was -6.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $61.6 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $258.1 million. The average EPS estimate is -$0.18.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 185 members out of 244 rating the stock outperform, and 59 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Renren a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Renren is hold, with an average price target of $3.63.
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