TechTarget Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

TechTarget (NAS: TTGT) filed its 10-K on Thursday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TechTarget missed slightly on revenues and missed estimates on earnings per share.

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

Margins grew across the board.

Revenue details
TechTarget recorded revenue of $28.9 million. The five analysts polled by S&P Capital IQ looked for revenue of $29.4 million on the same basis. GAAP reported sales were 7.6% higher than the prior-year quarter's $26.9 million.

anImage
anImage

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

EPS details
Non-GAAP EPS came in at $0.11. The five earnings estimates compiled by S&P Capital IQ averaged $0.12 per share on the same basis. GAAP EPS of $0.05 for Q4 were 67% higher than the prior-year quarter's $0.03 per share.

anImage
anImage

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 77%, 10 basis points better than the prior-year quarter. Operating margin was 17.9%, 470 basis points better than the prior-year quarter. Net margin was 6.9%, 200 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $24 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $116.5 million. The average EPS estimate is $0.39.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 41 members rating the stock outperform and 28 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give TechTarget a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TechTarget is outperform, with an average price target of $8.75.

New mobile devices and services are changing the game and profit potential at many former Internet leaders. Where does TechTarget fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement