InfoSpace Earnings Preview

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Investors never know what to expect for InfoSpace (NAS: INSP) , as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings tomorrow. InfoSpace develops search tools and technologies which assist consumers with finding content and information on the Internet.

What analysts say

  • Buy, sell, or hold?: Analysts strongly back InfoSpace, with two of three rating it a buy and the remainder rating it a hold. Wall Street has warmed to the stock over the past three months, with analysts increasing their endorsement from hold to moderate buy.
  • Revenue forecasts: On average, analysts predict $64.2 million in revenue this quarter. That would represent a rise of 8% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.09 per share. Estimates range from $0.07 to $0.10.

What our community says
CAPS All-Stars are solidly behind the stock with 82.2% giving it an outperform rating. The community at large backs the All-Stars with 77.3% awarding it a rating of outperform. Fools are bullish on InfoSpace, though the message boards have been quiet lately with only 55 posts in the past 30 days. Despite the majority sentiment in favor of InfoSpace, the stock has a middling CAPS rating of three out of five stars.

Management
Revenue has fallen in the past two quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

34.3%

35.6%

37.3%

40.9%

Operating Margin

5.3%

4.6%

(0.9%)

2.3%

Net Margin

3.5%

18.1%

(0.2%)

1.1%

One final thing: If you want to keep tabs on InfoSpace movements, and for more analysis on the company, make sure you add it to your watchlist.

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At the time this article was published

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