Ambow Education Holding Beats Up on Analysts Yet Again
Ambow Education Holding (NYS: AMBO) reported earnings on Mar. 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ambow Education Holding beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted to a loss.
Gross margins increased, operating margins contracted, and net margins dropped.
Ambow Education Holding recorded revenue of $89.0 million. The five analysts polled by S&P Capital IQ foresaw a top line of $84.6 million on the same basis. GAAP reported sales were 40% higher than the prior-year quarter's $63.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.24. The four earnings estimates compiled by S&P Capital IQ predicted $0.22 per share on the same basis. GAAP EPS were -$0.09 for Q4 versus $0.19 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.9%, 10 basis points better than the prior-year quarter. Operating margin was 22.6%, 410 basis points worse than the prior-year quarter. Net margin was -7.4%, 2,900 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $63.9 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $345.4 million. The average EPS estimate is $0.75.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 20 members out of 28 rating the stock outperform, and eight members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Ambow Education Holding 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 Ambow Education Holding is outperform, with an average price target of $10.56.
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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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