Internet Capital Group Earnings: Here’s Why the Stock is Falling Now

Internet Capital Group Inc. (NASDAQ:ICGE) had a loss 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 5.09%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Internet Capital Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.08 in the quarter versus EPS of $-0.19 in the year-earlier quarter.

Revenue: Rose 26.4% to $46.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Internet Capital Group Inc. reported adjusted EPS loss of $0.08 per share. By that measure, the company beat the mean analyst estimate of $-0.2. It missed the average revenue estimate of $48.78 million.

Quoting Management: “We had a strong start to the year with the sales of Channel Intelligence and Investor Force and, operationally, we made solid progress in the first quarter, driving 34% revenue growth. Importantly, of our $46.3 million in revenue, approximately 90% is recurring,” said Walter Buckley, ICG’s Chief Executive Officer. “We continued to aggressively pursue our key growth initiatives in the quarter, doubling our investment in sales and marketing across our businesses from the first quarter of 2012 to fortify our ability to further capitalize on the large market opportunity that we have in front of us.”

Key Stats (on next page)…

Revenue increased 37.59% from $33.65 million in the previous quarter. EPS decreased to $-0.08 in the quarter versus EPS of $0.40 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 loss of $0.15 to a loss $0.19. For the current year, the average estimate has moved down from a loss of $0.59 to a loss of $0.71 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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