What Does Wall Street See for XO Group's Q2?

Seth Jayson, The Motley Fool
Updated

XO Group (NYS: XOXO) is expected to report Q2 earnings on Aug. 5. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict XO Group's revenue will increase 7.5%.

The average estimate for revenue is $37.3 million. On the bottom line, the average EPS estimate is $0.10.


Revenue details
Last quarter, XO Group reported revenue of $29.8 million. GAAP reported sales were 8.1% higher than the prior-year quarter's $27.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.02. GAAP EPS were $0.02 for Q1 against -$0.02 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 83.7%, 280 basis points better than the prior-year quarter. Operating margin was 2.0%, 610 basis points better than the prior-year quarter. Net margin was 1.3%, 390 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $134.5 million. The average EPS estimate is $0.29.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 533 members out of 578 rating the stock outperform, and 45 members rating it underperform. Among 150 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 give XO Group 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 XO Group is outperform, with an average price target of $12.10.

New technology paradigms and mobile devices are driving the next wave of Internet services. Many older companies won't survive the change, while fortunes will be made by the first movers in the field. Where does XO Group fit in? What's the fortune-making change? Check out "The 2 Words Bill Gates Doesn't Want You to Hear..." Click here for instant access to this free report.

The article What Does Wall Street See for XO Group's Q2? 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement