Dolan Beats Expectations but Loses Ground Anyway
Dolan (NYS: DM) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Dolan met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to zero.
Margins dropped across the board.
Dolan reported revenue of $66.7 million. The five analysts polled by S&P Capital IQ hoped for a top line of $67.6 million on the same basis. GAAP-reported sales were 8% lower than the prior-year quarter's $72.5 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 $0.13. The five earnings estimates compiled by S&P Capital IQ forecast $0.12 per share. GAAP EPS shrank to zero from the prior-year quarter's $0.14.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.2%, 190 basis points worse than the prior-year quarter. Operating margin was 2.1%, 680 basis points worse than the prior-year quarter. Net margin was 0.3%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $72.7 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $302.9 million. The average EPS estimate is $0.92.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 73 members rating the stock outperform and 15 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Dolan a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dolan is outperform, with an average price target of $11.75.
Over the decades, small-cap stocks like Dolan have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Dolan to My Watchlist.
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 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.