Phoenix New Media Limited Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Phoenix New Media Limited (NYS: FENG) reported earnings on May 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Phoenix New Media Limited met expectations on revenues and beat expectations on earnings per share.

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


Margins grew across the board.

Revenue details
Phoenix New Media Limited reported revenue of $37.8 million. The two analysts polled by S&P Capital IQ predicted a top line of $37.4 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $26.2 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 two earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. GAAP EPS were $0.06 for Q1 against -$1.97 per share for the prior-year quarter.

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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 43.5%, 1,040 basis points better than the prior-year quarter. Operating margin was 11.4%, 2,550 basis points better than the prior-year quarter. Net margin was 13.8%, 2,910 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $45.4 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $197.8 million. The average EPS estimate is $0.41.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with four members out of 14 rating the stock outperform, and 10 members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Phoenix New Media Limited is buy, with an average price target of $10.13.

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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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