Golf Clap for Solera Holdings

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Solera Holdings (NYS: SLH) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q3), Solera Holdings met expectations on revenues and earnings per share.

Compared with the prior-year quarter, revenue grew and GAAP earnings per share shrank significantly.


Margins contracted across the board.

Revenue details
Solera Holdings booked revenue of $198.0 million. The nine analysts polled by S&P Capital IQ expected a top line of $196.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $175.5 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.70. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.69 per share. GAAP EPS of $0.38 for Q3 were 66% lower than the prior-year quarter's $1.13 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 68.6%, 260 basis points worse than the prior-year quarter. Operating margin was 29.7%, 130 basis points worse than the prior-year quarter. Net margin was 13.5%, 3,210 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $196.7 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $788.3 million. The average EPS estimate is $2.72.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 58 members out of 75 rating the stock outperform, and 17 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Solera Holdings a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Solera Holdings is outperform, with an average price target of $53.08.

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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.

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