The 10-second takeaway
For the quarter ended June 30 (Q2), Move beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Move reported revenue of $57.5 million. The five analysts polled by S&P Capital IQ predicted a top line of $56.1 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $49.3 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 $0.11. The five earnings estimates compiled by S&P Capital IQ averaged $0.09 per share. Non-GAAP EPS of $0.11 for Q2 were 175% higher than the prior-year quarter's $0.04 per share. GAAP EPS of $0.01 for Q2 were 75% lower than the prior-year quarter's $0.04 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 76.0%, 450 basis points worse than the prior-year quarter. Operating margin was 0.2%, 240 basis points worse than the prior-year quarter. Net margin was 0.8%, 210 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $56.5 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $225.2 million. The average EPS estimate is $0.48.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 111 members out of 204 rating the stock outperform, and 93 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Move a green thumbs-up, and 40 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Move is buy, with an average price target of $14.94.
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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.