The 10-second takeaway
For the quarter ended June 30 (Q2), Yandex met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Yandex logged revenue of $284.0 million. The eight analysts polled by S&P Capital IQ hoped for a top line of $282.1 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $209.7 million.
EPS came in at $0.28. The three earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. Non-GAAP EPS of $0.28 for Q2 were 47% higher than the prior-year quarter's $0.19 per share. GAAP EPS of $0.27 for Q2 were 50% higher than the prior-year quarter's $0.18 per share.
For the quarter, gross margin was 76.5%, 220 basis points better than the prior-year quarter. Operating margin was 35.0%, 200 basis points better than the prior-year quarter. Net margin was 31.7%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $295.5 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $1.07.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 195 members out of 207 rating the stock outperform, and 12 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Yandex a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Yandex is outperform, with an average price target of $31.79.
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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 Yandex. 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.