Interval Leisure Group Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Interval Leisure Group (NAS: IILG) reported earnings on Thursday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Interval Leisure Group beat expectations on revenues and beat expectations on earnings per share.

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

Gross margins dropped, operating margins improved, and net margins improved.

Revenue details
Interval Leisure Group recorded revenue of $99.5 million. The two analysts polled by S&P Capital IQ looked for sales of $97.3 million on the same basis. GAAP reported sales were 6.5% higher than the prior-year quarter's $93.5 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 $0.16. The three earnings estimates compiled by S&P Capital IQ forecast $0.10 per share. GAAP EPS of $0.16 for Q4 were 60% higher than the prior-year quarter's $0.10 per share.

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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 66%, 40 basis points worse than the prior-year quarter. Operating margin was 20.6%, 130 basis points better than the prior-year quarter. Net margin was 9%, 220 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $124.5 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $449.0 million. The average EPS estimate is $0.78.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 10 members rating the stock outperform and 10 members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Interval Leisure Group 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 Interval Leisure Group is outperform, with an average price target of $17.33.

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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. 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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