Advisory Board Earnings: Here’s Why the Stock is Falling Now

Advisory Board Co. (NASDAQ:ABCO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.70%.

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Advisory Board Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 65% to $0.33 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Rose 25% to $119.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Advisory Board Co. reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.29. It beat the average revenue estimate of $117.86 million.

Quoting Management: Robert Musslewhite, Chief Executive Officer of The Advisory Board Company, commented, “We closed the quarter and the fiscal year with strong performance, with 19% revenue growth for the quarter, 22% revenue growth for the fiscal year, and 17% contract value growth over last year at this time. These financial metrics, along with our 10% membership base expansion and 90% institutional renewal rate, illustrate that our business model remains robust and that our members derive measurable impact from their work with us. We continue to see a virtuous cycle as this tangible value means that members want to work with us in deeper and more comprehensive partnerships, driving ongoing company growth and expansion of our footprint and impact.”

Key Stats (on next page)…

Revenue increased 2.99% from $116.23 million in the previous quarter. EPS increased 17.86% from $0.28 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.32 to a profit $0.3. For the current year, the average estimate has moved down from a profit of $1.22 to a profit of $1.2 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]