Golf Clap for China Distance Education Holdings

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 22, 2013 at 12:00AM
Other

China Distance Education Holdings (NYSE: DL) reported earnings on May 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q2), China Distance Education Holdings met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
China Distance Education Holdings recorded revenue of $13.0 million. The two analysts polled by S&P Capital IQ expected revenue of $13.1 million on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $12.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.02. The two earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS of $0.02 for Q2 were 75% lower than the prior-year quarter's $0.08 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.6%, much worse than the prior-year quarter. Operating margin was 5.4%, much worse than the prior-year quarter. Net margin was 6.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $16.5 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $65.5 million. The average EPS estimate is $0.34.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on China Distance Education Holdings is outperform, with an average price target of $7.00.

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