HomeAway Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

HomeAway (NAS: AWAY) reported earnings on Feb. 20. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), HomeAway met expectations on revenues and beat expectations on earnings per share.

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


Gross margins shrank, operating margins expanded, net margins grew.

Revenue details
 HomeAway reported revenue of $71.6 million. The 12 analysts polled by S&P Capital IQ expected sales of $70.9 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $58.5 million.

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

EPS details
 EPS came in at $0.05. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.04 per share. GAAP EPS of $0.05 for Q4 were much higher than the prior-year quarter's $0.00 per share.

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 82.9%, 190 basis points worse than the prior-year quarter. Operating margin was 10.4%, 160 basis points better than the prior-year quarter. Net margin was 6.4%, 680 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $77.5 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $337.4 million. The average EPS estimate is $0.32.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 89 members out of 124 rating the stock outperform, and 35 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give HomeAway a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HomeAway is outperform, with an average price target of $27.70.

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The article HomeAway Beats Up on Analysts Yet Again 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 recommends HomeAway. The Motley Fool owns shares of HomeAway. 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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