Interval Leisure Group Earnings Preview

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Interval Leisure Group (NAS: IILG) didn't hit the Street's expectations last quarter, but investors hope that it will rebound this quarter. The company will unveil its latest earnings on Thursday, August 4. Interval Leisure Group is a global provider of membership and leisure services to the vacation industry.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Interval Leisure Group better than competitor Viad overall. Zero out of one analysts rate Viad a buy compared to one of one for Interval Leisure Group. Interval Leisure Group's rating hasn't changed over the past three months.
  • Revenue Forecasts: On average, analysts predict $103 million in revenue this quarter. That would represent a rise of 1.4% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.17 per share. Estimates range from $0.16 to $0.19.

What our community says:
The majority of CAPS All Stars see IILG as a good bet, with 66.7% assigning it an "outperform" rating. The community is divided on the stock, with 47.4% Fools granting it an "outperform" rating and 52.6% an "underperform" rating. Fools have embraced Interval Leisure Group, though the message boards have been quiet lately with only nine posts in the past 30 days. Interval Leisure Group's bearish CAPS rating of one out of five stars falls short of the Fool community sentiment.

Management:
Interval Leisure Group's profit has risen year over year by an average of 17.3%. The company's gross margin shrank by two percentage points in the last quarter. Revenue rose 2.8% while cost of sales rose 9.8% to $37.5 million from a year earlier.

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

67.9%

66.4%

69.0%

69.0%

Operating Margin

26.7%

19.3%

24.6%

26.4%

Net Margin

11.3%

6.8%

9.2%

11.1%

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At the time this article was published

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