j2 Global's Latest EPS Top Last Year's by 36%

Seth Jayson, The Motley Fool
Updated

j2 Global (NAS: JCOM) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), j2 Global met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew.

Gross margins increased, operating margins grew, net margins contracted.

Revenue details
j2 Global reported revenue of $86.0 million. The eight analysts polled by S&P Capital IQ predicted a top line of $86.5 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $71.0 million.

anImage
anImage

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

EPS details
Non-GAAP EPS came in at $0.64. The eight earnings estimates compiled by S&P Capital IQ averaged $0.64 per share on the same basis. GAAP EPS of $0.62 for Q3 were 6.9% higher than the prior-year quarter's $0.58 per share.

anImage
anImage

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

Margin details
For the quarter, gross margin was 82.8%, 70 basis points better than the prior-year quarter. Operating margin was 45.2%, 660 basis points better than the prior-year quarter. Net margin was 35.1%, 270 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $85.9 million. On the bottom line, the average EPS estimate is $0.63.

Next year's average estimate for revenue is $339.9 million. The average EPS estimate is $2.52.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 415 members out of 439 rating the stock outperform, and 24 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 166 give j2 Global 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 j2 Global is outperform, with an average price target of $35.25.

Can your portfolio provide you with enough income to last through retirement? You'll need more than j2 Global. Learn how to maximize your investment income and "Secure Your Future With 11 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

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.

Advertisement