The 10-second takeaway
For the quarter ended June 30 (Q2), NeuStar met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share increased.
Gross margins contracted, operating margins expanded, net margins grew.
NeuStar reported revenue of $220.4 million. The 11 analysts polled by S&P Capital IQ hoped for revenue of $219.2 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $206.5 million.
EPS came in at $0.85. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.80 per share. Non-GAAP EPS of $0.85 for Q2 were 13% higher than the prior-year quarter's $0.75 per share. GAAP EPS of $0.65 for Q2 were 14% higher than the prior-year quarter's $0.57 per share.
For the quarter, gross margin was 77.2%, 50 basis points worse than the prior-year quarter. Operating margin was 33.9%, 80 basis points better than the prior-year quarter. Net margin was 19.7%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $230.4 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $904.4 million. The average EPS estimate is $3.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 246 members out of 261 rating the stock outperform, and 15 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give NeuStar a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NeuStar is outperform, with an average price target of $49.63.
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