Financial Engines' Earnings Beat Last Year's by 40%

Seth Jayson, The Motley Fool
Updated

Financial Engines (NAS: FNGN) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Financial Engines beat slightly on revenues and missed estimates on earnings per share.

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


Gross margins contracted, operating margins improved, and net margins increased.

Revenue details
Financial Engines logged revenue of $41.7 million. The six analysts polled by S&P Capital IQ looked for revenue of $40.9 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $32.3 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 $0.07. The six earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS of $0.07 for Q1 were 40% higher than the prior-year quarter's $0.05 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 63.3%, 70 basis points worse than the prior-year quarter. Operating margin was 13.7%, 190 basis points better than the prior-year quarter. Net margin was 8.4%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $43.8 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $182.4 million. The average EPS estimate is $0.48.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 22 members out of 28 rating the stock outperform, and six members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Financial Engines a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Financial Engines is outperform, with an average price target of $26.

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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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