Demand Media Inc (NYSE:DMD) 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.
Demand Media Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 28.57% to $0.09 in the quarter versus EPS of $0.07 in the year-earlier quarter.
Revenue: Rose 16.66% to $100.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Demand Media Inc reported adjusted EPS income of $0.09 per share. By that measure, the company beat the mean analyst estimate of $0.08. It beat the average revenue estimate of $95.25 million.
Quoting Management: “Strong growth from our owned & operated content and media properties drove our Q1 results, highlighting the unique capabilities of our content discovery, creation and distribution platform. Further, we accelerated our paid content strategy with the acquisition of Creativebug, a premier online destination for arts and crafts instruction, which will provide our large eHow crafts audience with an expanded learning experience. In addition, we signed up over 400 resellers to our new gTLD tools and received more than two million expressions of interest for domains to be registered with new gTLDs,” said Richard Rosenblatt, Chairman and CEO of Demand Media. “We are excited about the distinct long-term growth opportunities for both of our businesses.”
Key Stats (on next page)…
Revenue decreased 2.46% from $103.14 million in the previous quarter. EPS decreased 25% from $0.12 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 $0.11 to a profit $0.10. For the current year, the average estimate has moved down from a profit of $0.46 to a profit of $0.41 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)