The 10-second takeaway
For the quarter ended June 30 (Q2), Navigant Consulting beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Margins increased across the board.
Navigant Consulting notched revenue of $213.1 million. The six analysts polled by S&P Capital IQ expected revenue of $208.7 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $181.5 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 $0.31. The six earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. Non-GAAP EPS of $0.31 for Q2 were 48% higher than the prior-year quarter's $0.21 per share. GAAP EPS of $0.27 for Q2 were 50% higher than the prior-year quarter's $0.18 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 41.2%, 850 basis points better than the prior-year quarter. Operating margin was 12.2%, 230 basis points better than the prior-year quarter. Net margin was 6.5%, 120 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $202.7 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $784.8 million. The average EPS estimate is $1.03.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 133 members out of 147 rating the stock outperform, and 14 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Navigant Consulting a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Navigant Consulting is outperform, with an average price target of $15.33.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.