Monotype Imaging Holdings
The 10-second takeaway
For the quarter ended June 30 (Q2), Monotype Imaging Holdings met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank. GAAP earnings per share shrank.
Gross margins increased, operating margins dropped, net margins shrank.
Monotype Imaging Holdings booked revenue of $41.1 million. The six analysts polled by S&P Capital IQ looked for a top line of $41.1 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $38.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.26. The six earnings estimates compiled by S&P Capital IQ averaged $0.28 per share. Non-GAAP EPS of $0.26 for Q2 were 3.7% lower than the prior-year quarter's $0.27 per share. GAAP EPS of $0.18 for Q2 were 5.3% lower than the prior-year quarter's $0.19 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 85.4%, 120 basis points better than the prior-year quarter. Operating margin was 29.6%, 140 basis points worse than the prior-year quarter. Net margin was 17.8%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $41.0 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $166.5 million. The average EPS estimate is $1.11.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 24 members out of 33 rating the stock outperform, and nine members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Monotype Imaging Holdings a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Monotype Imaging Holdings is outperform, with an average price target of $25.20.
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