InfoSpace Earnings Preview

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InfoSpace (NAS: INSP) came in under analysts' estimates last quarter, but now has a chance to fix things this quarter. The company will unveil its latest earnings on Wednesday, Feb. 15. InfoSpace develops search tools and technologies that assist consumers with finding content and information on the Internet.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy.
  • Revenue forecasts: On average, analysts predict $58.9 million in revenue this quarter. That would represent a decline of 7.9% 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 $0.11.

What our community says:
The majority of CAPS All-Stars see InfoSpace as a good bet, with 67.5% granting it an outperform rating. The majority of the Fools agree with the All-Stars, with 73.6% giving it an outperform rating. Fools are keen on InfoSpace, though the message boards have been quiet lately, with only 58 posts in the past 30 days. InfoSpace's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Revenue has fallen for the past three quarters. The company's gross margin shrank by 6.2 percentage points in the last quarter. Revenue fell 8.8% while cost of sales rose 0.1% to $38.8 million from a year earlier.

Now, a look at how efficient management has been at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. The company's operating margins have been increasing year over year for the last three quarters. Operating margins reflect the total sales revenue that the company retains after costs. Here are InfoSpace's reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

31.1%

34%

34.3%

35.6%

Operating Margin

6%

11.8%

5.3%

4.6%

Net Margin

3.7%

(7.2%)

3.5%

18.1%

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Earnings estimates provided by Zacks.

At the time this article was published

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