Golf Clap for China Distance Education Holdings

Seth Jayson, The Motley Fool
Updated

China Distance Education Holdings (NYS: DL) reported earnings on May 21. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q2), China Distance Education Holdings met expectations on revenues and met expectations on earnings per share.

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


Margins shrank across the board.

Revenue details
 China Distance Education Holdings recorded revenue of $13.0 million. The two analysts polled by S&P Capital IQ expected revenue of $13.1 million on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $12.3 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 $0.02. The two earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS of $0.02 for Q2 were 75% lower than the prior-year quarter's $0.08 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 46.6%, much worse than the prior-year quarter. Operating margin was 5.4%, much worse than the prior-year quarter. Net margin was 6.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $16.5 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $65.5 million. The average EPS estimate is $0.34.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on China Distance Education Holdings is outperform, with an average price target of $7.00.

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The article Golf Clap for China Distance Education Holdings 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 position in any of the stocks mentioned. 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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