The 10-second takeaway
For the quarter ended June 30 (Q4), QuinStreet met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share.
Margins dropped across the board.
QuinStreet tallied revenue of $75.7 million. The five analysts polled by S&P Capital IQ hoped for sales of $76.0 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $85.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.04. The four earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share. GAAP EPS were -$0.04 for Q4 versus $0.00 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.7%, 200 basis points worse than the prior-year quarter. Operating margin was 3.2%, 110 basis points worse than the prior-year quarter. Net margin was -2.1%, 230 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $77.8 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $304.0 million. The average EPS estimate is $0.04.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 22 members out of 29 rating the stock outperform, and seven members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give QuinStreet a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QuinStreet is hold, with an average price target of $6.75.
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