inContact Increases Sales but Misses Estimates on Earnings
inContact (NAS: SAAS) reported earnings on Feb. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), inContact beat expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share grew.
Margins contracted across the board.
inContact booked revenue of $23.8 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $23.2 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $20.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.07. The five earnings estimates compiled by S&P Capital IQ forecast -$0.06 per share. GAAP EPS were -$0.07 for Q4 compared to -$0.03 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 41.8%, 130 basis points worse than the prior-year quarter. Operating margin was -12.2%, 780 basis points worse than the prior-year quarter. Net margin was -13.1%, 730 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $24.8 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $105.6 million. The average EPS estimate is -$0.13.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 14 members out of 21 rating the stock outperform, and seven members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give inContact a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on inContact is outperform, with an average price target of $5.13.
Over the decades, small-cap stocks like inContact have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add inContact to My Watchlist.
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