Meredith Beats Estimates Yet Again
Meredith (NYS: MDP) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Meredith missed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted, and earnings per share dropped significantly.
Margins contracted across the board.
Meredith notched revenue of $329 million. The six analysts polled by S&P Capital IQ anticipated revenue of $343 million. Sales were 10% lower than the prior-year quarter's $367 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.70. The seven earnings estimates compiled by S&P Capital IQ averaged $0.67 per share. GAAP EPS of $0.70 for Q2 were 20% lower than the prior-year quarter's $0.88 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 60.9%, 150 basis points worse than the prior-year quarter. Operating margin was 16.7%, 230 basis points worse than the prior-year quarter. Net margin was 9.6%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $347 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $1.4 billion. The average EPS estimate is $2.63.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 123 members out of 151 rating the stock outperform, and 28 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Meredith 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 Meredith is outperform, with an average price target of $32.86.
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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 here. He is 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 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.
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