Fool Cheat Sheet: ReachLocal Earnings

Seth Jayson, The Motley Fool
Updated

ReachLocal (NAS: RLOC) reported earnings on Feb. 15. Here are the numbers you need to know.

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

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

Margins increased across the board.

Revenue details
ReachLocal booked revenue of $99.8 million. The seven analysts polled by S&P Capital IQ predicted revenue of $99.4 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $80.6 million.

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

EPS details
EPS came in at -$0.04. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.06 per share. GAAP EPS were -$0.04 for Q4 against -$0.13 per share for the prior-year quarter.

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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 50.7%, 480 basis points better than the prior-year quarter. Operating margin was 1.1%, 630 basis points better than the prior-year quarter. Net margin was -1.2%, 330 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $102.8 million. On the bottom line, the average EPS estimate is -$0.06.

Next year's average estimate for revenue is $442.6 million. The average EPS estimate is -$0.11.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 82 members out of 85 rating the stock outperform, and three members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give ReachLocal a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ReachLocal is outperform, with an average price target of $13.81.

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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. Motley Fool newsletter services have recommended buying shares of ReachLocal. 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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