The 10-second takeaway
For the quarter ended June 30 (Q2), United Online missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted. GAAP earnings per share contracted significantly.
Margins shrank across the board.
United Online notched revenue of $221.7 million. The three analysts polled by S&P Capital IQ expected revenue of $228.1 million on the same basis. GAAP reported sales were 4.4% lower than the prior-year quarter's $231.9 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 $0.17. The three earnings estimates compiled by S&P Capital IQ averaged $0.13 per share. Non-GAAP EPS of $0.17 for Q2 were 5.6% lower than the prior-year quarter's $0.18 per share. GAAP EPS of $0.06 for Q2 were 33% lower than the prior-year quarter's $0.09 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 44.9%, 100 basis points worse than the prior-year quarter. Operating margin was 6.3%, 130 basis points worse than the prior-year quarter. Net margin was 2.8%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $173.1 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $862.5 million. The average EPS estimate is $0.50.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 245 members out of 271 rating the stock outperform, and 26 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give United Online a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Online is buy, with an average price target of $8.24.
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