Blucora Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Blucora (NAS: BCOR) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Blucora beat expectations on revenues and crushed expectations on earnings per share.

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


Margins expanded across the board.

Revenue details
Blucora recorded revenue of $100.9 million. The three analysts polled by S&P Capital IQ looked for a top line of $93.9 million on the same basis. GAAP reported sales were 86% higher than the prior-year quarter's $54.3 million.

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 $0.53. The two earnings estimates compiled by S&P Capital IQ averaged $0.35 per share. GAAP EPS were $0.23 for Q2 versus -$0.13 per share for the prior-year quarter.

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 36.3%, 370 basis points better than the prior-year quarter. Operating margin was 16.1%, 600 basis points better than the prior-year quarter. Net margin was 9.6%, 1,820 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $77.6 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $374.2 million. The average EPS estimate is $1.16.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 123 members rating the stock outperform, and 38 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Blucora a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Blucora is outperform, with an average price target of $14.75.

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The article Blucora Crushes Earnings Estimates originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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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