Can EarthLink Beat These Numbers?
EarthLink (NAS: ELNK) is expected to report Q3 earnings on Oct. 30. 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 EarthLink's revenues will decrease -6.6% and EPS will compress -61.5%.
The average estimate for revenue is $333.7 million. On the bottom line, the average EPS estimate is $0.05.
Last quarter, EarthLink recorded revenue of $338.2 million. GAAP reported sales were 7.0% lower than the prior-year quarter's $363.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.05. GAAP EPS were -$0.01 for Q2 against $0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 50.3%, 450 basis points worse than the prior-year quarter. Operating margin was 5.2%, 590 basis points worse than the prior-year quarter. Net margin was -0.3%, 210 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $1.35 billion. The average EPS estimate is $0.19.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 281 members out of 361 rating the stock outperform, and 80 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give EarthLink a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EarthLink is buy, with an average price target of $12.15.
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The article Can EarthLink Beat These Numbers? 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.