Demand Media First Quarter Earnings Sneak Peek

Demand Media (NYSE:DMD) will unveil its latest earnings on Tuesday, May 8, 2012. Demand Media, together with its subsidiaries, operates as a content and social media company in the United States. It identifies, creates, distributes, and monetizes in-demand, long-lived content.

Demand Media Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of one cent per share, a spike from net loss of 10 cents in the year-ago quarter. During the past three months, the average estimate has moved up from breaking even. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. For the year, analysts are projecting profit of 9 cents per share, a spike from a loss of 10 cents last year.

Past Earnings Performance: Last quarter, the company met expectations by reporting net loss of one cent per share last quarter. In the previous third quarter of the last fiscal year, the company beat estimates by 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $79.7 million in revenue this quarter, a rise of 4.4% from the year-ago quarter. Analysts are forecasting total revenue of $340.6 million for the year, a rise of 9% from last year’s revenue of $312.4 million.

Analyst Ratings: Analysts are bullish on this stock, with six analysts rating it as a buy, one rating it as a sell and two rating it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, the company swung to a loss of $6.4 million (8 cents a share) from a profit of $1 million ($2.78) a year earlier, meeting analyst expectations. Revenue rose 14.7% to $84.4 million from $73.6 million.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 24.7% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between February 6, 2012 and May 2, 2012, the stock price rose $2.07 (32.4%), from $6.38 to $8.45. It saw one of its worst periods between July 22, 2011 and August 4, 2011 when shares fell for 10 straight days, dropping 28.9% (-$3.44) over that span. The stock price saw one of its best stretches over the last year between April 25, 2012 and May 1, 2012, when shares rose for five straight days, increasing 23.2% (+$1.62) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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