ValueClick Earnings Preview

Motley Fool Staff
Updated

Watch ValueClick's (NAS: VCLK) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Tuesday, Aug. 2. ValueClick offers a suite of products and services that enable marketers to advertise and sell their products through all online marketing channels- display advertising, lead generation marketing, email marketing, search marketing etc.

What analysts say:

  • Buy, sell, or hold?: Analysts generally think investors should hang on to ValueClick, with half rating the stock a hold. Analysts don't like ValueClick as much as competitor National CineMedia overall. Eight out of 14 analysts rate National CineMedia a buy, compared to eight of 16 for ValueClick. Analysts still rate the stock a hold, but they are a bit more wary about it compared to three months ago.

  • Revenue forecasts: On average, analysts predict $121.3 million in revenue this quarter. That would represent a rise of 21.8% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate calls for earnings of $0.19 per share. Estimates range from $0.19 to $0.20.

What our community says:
CAPS All Stars are solidly backing the stock, with 92.1% granting it an "outperform" rating. The community at large agrees with the All Stars, with 93.5% giving it a rating of "outperform." Fools are keen on ValueClick, and they haven't been shy with their opinions lately, logging 231 posts in the past 30 days. ValueClick's bearish CAPS rating of two out of five stars falls short of the Fool community's sentiment.

Management:
ValueClick's profit has risen year over year by an average of 10.2%. The company's revenue has now risen for two straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

71.8%

72.5%

73.3%

72.5%

Operating Margin

22.8%

25.4%

20.9%

18.6%

Net Margin

14.5%

16.4%

33.9%

12.1%

One final thing: If you want to keep tabs on ValueClick movements, and for more analysis on the company, make sure you add it to your Watchlist.

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At the time thisarticle was published

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