AVG Technologies NV Earnings: Here’s Why the Stock is Falling Now

AVG Technologies NV (NYSE:AVG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.69%.

AVG Technologies NV Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 68.75% to $0.54 in the quarter versus EPS of $0.32 in the year-earlier quarter.

Revenue: Rose 21.67% to $100.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AVG Technologies NV reported adjusted EPS income of $0.54 per share. By that measure, the company beat the mean analyst estimate of $0.42. It missed the average revenue estimate of $100.5 million.

Quoting Management: “It has been a strong quarter for AVG in many areas. First, we are excited to welcome Gary Kovacs as our new CEO. His vision and expertise across all areas of the business will help us accelerate the delivery of our products to Internet users everywhere,” commented John Little, CFO of AVG Technologies.
“We have again reported strong financial results for the quarter and delivered solid growth in our subscription business. Our platform business contributed well, following a record first quarter. We closed the quarter with 155 million active users, a year over year increase of 21 percent, including 44 million mobile users, up nicely over the first quarter. We remain confident in the opportunity ahead with mobile as the cornerstone of our multi-platform, multi-screen strategy,” concluded Little.

Key Stats (on next page)…

Revenue decreased 4.13% from $104.73 million in the previous quarter. EPS decreased 6.9% from $0.58 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.45 to a profit $0.46. For the current year, the average estimate has moved up from a profit of $1.9 to a profit of $1.91 over the last ninety days.

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