Kenexa Beats Up on Analysts Yet Again
Kenexa (NYS: KNXA) reported earnings on Feb. 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kenexa beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share expanded.
Gross margins dropped, operating margins expanded, and net margins improved.
Kenexa logged revenue of $75.7 million. The 12 analysts polled by S&P Capital IQ foresaw sales of $73.7 million. Sales were 28% higher than the prior-year quarter's $50.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.23. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.20 per share on the same basis. GAAP EPS were $0.02 for Q3 versus -$0.30 per share for 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 58.8%, 580 basis points worse than the prior-year quarter. Operating margin was 3.7%, 200 basis points better than the prior-year quarter. Net margin was 0.8%, 1,210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $77.6 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $288.5 million. The average EPS estimate is $0.82.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 68 members rating the stock outperform and six members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Kenexa a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kenexa is outperform, with an average price target of $33.
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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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