Are You Expecting This from Ebix?

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Ebix (NAS: EBIX) is expected to report Q3 earnings on Nov. 8. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Ebix's revenues will grow 19.5% and EPS will shrink -2.4%.

The average estimate for revenue is $50.9 million. On the bottom line, the average EPS estimate is $0.40.


Revenue details
Last quarter, Ebix reported revenue of $47.7 million. GAAP reported sales were 13% higher than the prior-year quarter's $42.3 million.

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

EPS details
Last quarter, EPS came in at $0.47. GAAP EPS of $0.47 for Q2 were 11% lower than the prior-year quarter's $0.53 per share.

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

Recent performance
For the preceding quarter, gross margin was 80.8%, 190 basis points better than the prior-year quarter. Operating margin was 37.1%, 240 basis points worse than the prior-year quarter. Net margin was 37.9%, 1,500 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $194.6 million. The average EPS estimate is $1.68.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,469 members out of 1,509 rating the stock outperform, and 40 members rating it underperform. Among 327 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 319 give Ebix 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 Ebix is buy, with an average price target of $26.50.

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The article Are You Expecting This from Ebix? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Ebix. Motley Fool newsletter services recommend Ebix. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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