United Online Beats Expectations but Takes a Step Back Anyway
United Online (NAS: UNTD) reported earnings on May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), United Online met expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped.
Margins dropped across the board.
United Online reported revenue of $242.3 million. The three analysts polled by S&P Capital IQ foresaw a top line of $240.3 million on the same basis. GAAP reported sales were 0.3% higher than the prior-year quarter's $241.5 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 $0.21. The three earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. GAAP EPS of $0.12 for Q1 were 7.7% lower than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.9%, 410 basis points worse than the prior-year quarter. Operating margin was 8.7%, 90 basis points worse than the prior-year quarter. Net margin was 4.8%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $235.3 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $881.9 million. The average EPS estimate is $0.69.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 261 members out of 282 rating the stock outperform, and 21 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give United Online 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 United Online is outperform, with an average price target of $7.89.
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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. He is the 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 don't 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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