InfoSpace Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

InfoSpace (NAS: INSP) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), InfoSpace beat expectations on revenues and crushed expectations on earnings per share.

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


Margins improved across the board.

Revenue details
InfoSpace logged revenue of $115.7 million. The one analyst polled by S&P Capital IQ foresaw sales of $110.9 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $51.7 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 $0.70. The three earnings estimates compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.28 for Q1 were much higher than the prior-year quarter's $0.04 per share. (The prior-year quarter included -$0.04 per share in earnings from discontinued operations.)

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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 48.5%, 1,180 basis points better than the prior-year quarter. Operating margin was 17.6%, 880 basis points better than the prior-year quarter. Net margin was 9.9%, 730 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $88.5 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $341.9 million. The average EPS estimate is $0.82.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 111 members out of 148 rating the stock outperform, and 37 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give InfoSpace a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on InfoSpace is outperform, with an average price target of $13.50.

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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. 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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