Blackboard Second Quarter Earnings Sneak Peek

Blackboard, Inc. (NASDAQ:BBBB) will unveil its latest earnings on Monday, August 8, 2011. Blackboard, Inc. is a provider of enterprise software applications and related services to the education industry.

Blackboard, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 19 cents per share, a decline of 36.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 17 cents. For the year, analysts are projecting net income of $1.46 per share, a rise of 16.8% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the first quarter, it reported profit of 13 cents per share versus a mean estimate of 18 cents. Two quarters ago, it reported net income of 24 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $126.2 million in revenue this quarter, a rise of 17.2% from the year ago quarter. Analysts are forecasting total revenue of $538.6 million for the year, a rise of 20.4% from last year’s revenue of $447.3 million.

Analyst Ratings: Analysts seem relatively indifferent about Blackboard with seven of nine analysts surveyed maintaining a hold rating.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 18.7%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 22.8% from the year earlier quarter.

Blackboard’s loss in the latest quarter follows profits in the previous three quarters. The company reported a loss of of $3.4 million in the first quarter, a profit of $1.5 million in the fourth quarter of the last fiscal year, a profit of $5.7 million in the third of the last fiscal year and a profit of $4.4 million in the second quarter of the last fiscal year.

The company’s gross margin shrank by 5.9 percentage points in the in the first quarter. Revenue rose 17.5% while cost of sales rose 41.6% to $41.1 million from a year earlier.

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), K12 Inc. (NYSE:LRN), Microsoft Corporation (NASDAQ:MSFT), Tyler Technologies, Inc. (NYSE:TYL), The McGraw-Hill Companies, Inc. (NYSE:MHP), Adobe Systems Incorporated (NASDAQ:ADBE), Renaissance Learning, Inc. (NASDAQ:RLRN), Google Inc. (NASDAQ:GOOG), CDC Software Corp (NASDAQ:CDCS), and Citrix Systems, Inc. (NASDAQ:CTXS).

Stock Price Performance: During June 6, 2011 to August 2, 2011, the stock price had risen $2.87 (7.1%) from $40.59 to $43.46. The stock price saw one of its best stretches over the last year between August 31, 2010 and September 13, 2010 when shares rose for nine-straight days, rising 11.8% (+$3.91) over that span. It saw one of its worst periods between January 5, 2011 and January 13, 2011 when shares fell for seven-straight days, falling 4.6% (-$1.93) over that span. Shares are up $2.16 (+5.2%) year to date.

(Source: Xignite Financials)

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