DealerTrack Holdings Beats on Both Top and Bottom Lines
DealerTrack Holdings (NAS: TRAK) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), DealerTrack Holdings beat expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Gross margins dropped, operating margins grew, net margins contracted.
DealerTrack Holdings booked revenue of $91.6 million. The eight analysts polled by S&P Capital IQ wanted to see a top line of $84.6 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $77.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.22. The eight earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.39 for Q1 were 34% lower than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.4%, 310 basis points worse than the prior-year quarter. Operating margin was 1.5%, 280 basis points better than the prior-year quarter. Net margin was 18.5%, 1,350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $94.1 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $369.9 million. The average EPS estimate is $1.03.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 66 members out of 94 rating the stock outperform, and 28 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give DealerTrack Holdings a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DealerTrack Holdings is hold, with an average price target of $31.38.
Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is DealerTrack Holdings on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-Dollar Revolution." Get instant access to this free report.
- Add DealerTrack Holdings to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.