The Gory Details on Rentrak's Double Fumble
Rentrak (NAS: RENT) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Rentrak missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted, and GAAP loss per share improved.
Gross margins grew, operating margins expanded, and net margins contracted.
Rentrak logged revenue of $22.2 million. The nine analysts polled by S&P Capital IQ predicted sales of $22.7 million. Sales were 6.3% lower than the prior-year quarter's $23.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.02. The five earnings estimates compiled by S&P Capital IQ averaged $0.07 per share on the same basis. GAAP EPS were -$0.18 for Q3 against -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 47.8%, 720 basis points better than the prior-year quarter. Operating margin was -4.4%, 320 basis points better than the prior-year quarter. Net margin was -8.8%, 680 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $24.4 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $91.8 million. The average EPS estimate is -$0.21.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 48 members rating the stock outperform and 13 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Rentrak a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rentrak is buy, with an average price target of $22.29.
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At the time this article was published 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. 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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