Web.com Group's Earnings Beat Last Year's by 17%
Web.com Group (NAS: WWWW) reported earnings on March 13. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Web.com Group whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved.
Gross margins improved, operating margins contracted, and net margins grew.
Web.com Group booked revenue of $73.6 million. The seven analysts polled by S&P Capital IQ predicted revenue of $87.9 million on the same basis. GAAP reported sales were 95% higher than the prior-year quarter's $37.6 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 $0.28. The seven earnings estimates compiled by S&P Capital IQ predicted $0.23 per share on the same basis. GAAP EPS were $0.01 for Q4 versus -$0.64 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 56.4%, 320 basis points better than the prior-year quarter. Operating margin was -42.5%, 2,360 basis points worse than the prior-year quarter. Net margin was 0.7%, 4,350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $109.4 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $463.1 million. The average EPS estimate is $1.46.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 114 members out of 137 rating the stock outperform, and 23 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Web.com Group a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Web.com Group is outperform, with an average price target of $16.25.
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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.