LogMeIn Earnings: Here’s Why Investors Don’t Like These Results
LogMeIn, Inc. (NASDAQ:LOGM) 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. Shares are down 21.6%.
LogMeIn, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.24 in the quarter versus EPS of $0.19 in the year-earlier quarter.
Revenue: Rose 14.48% to $37 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: LogMeIn, Inc. reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.18. It beat the average revenue estimate of $36.73 million.
Quoting Management: “In the fourth quarter, a record number of net new premium subscribers and strong growth in our newer cloud services helped us deliver revenue and earnings per share that exceeded our guidance,” said Michael Simon, president and CEO of LogMeIn. “Year-over-year subscription revenue growth was up 20 percent in the quarter, led by especially strong demand for our Access and Collaboration cloud services, most notably join.me. We also added approximately 27,000 net new premium subscribers, increasing our total premium customers to approximately 462,000, while attracting approximately 2.4 million first time users of our services.”
Key Stats (on next page)…
Revenue increased 4.61% from $35.37 million in the previous quarter. EPS increased 33.33% from $0.18 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.18 and has not changed. For the current year, the average estimate is a profit of $0.67, which is the same with that ninety days ago.
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)