InfoSpace Crushes Earnings Estimates

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InfoSpace (NAS: INSP) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), InfoSpace beat expectations on revenues and crushed expectations on earnings per share.

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


Margins improved across the board.

Revenue details
InfoSpace logged revenue of $115.7 million. The one analyst polled by S&P Capital IQ foresaw sales of $110.9 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $51.7 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 three earnings estimates compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.28 for Q1 were much higher than the prior-year quarter's $0.04 per share. (The prior-year quarter included -$0.04 per share in earnings from discontinued operations.)

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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 48.5%, 1,180 basis points better than the prior-year quarter. Operating margin was 17.6%, 880 basis points better than the prior-year quarter. Net margin was 9.9%, 730 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $88.5 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $341.9 million. The average EPS estimate is $0.82.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 111 members out of 148 rating the stock outperform, and 37 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give InfoSpace a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on InfoSpace is outperform, with an average price target of $13.50.

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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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