NIC (NAS: EGOV) reported earnings on Feb. 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NIC missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share didn't move.
Gross margins expanded, operating margins dropped, and net margins dropped.
NIC tallied revenue of $45.1 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $46.5 million. Sales were 10% higher than the prior-year quarter's $40.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.08. The four earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share. GAAP EPS of $0.08 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 42.7%, 540 basis points better than the prior-year quarter. Operating margin was 21.4%, 810 basis points worse than the prior-year quarter. Net margin was 12.3%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $48.9 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $209.9 million. The average EPS estimate is $0.43.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 230 members out of 246 rating the stock outperform, and 16 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give NIC a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NIC is hold, with an average price target of $14.25.
New technology paradigms and mobile devices are driving the next wave of Internet services. Many older companies won't survive the change, while fortunes will be made by the first movers in the field. Where does NIC fit in? What's the fortune-making change? Check out "The Two Words Bill Gates Doesn't Want You to Hear." Click here for instant access to this free report.
Add NIC to My Watchlist.
At the time thisarticle 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.