OpenTable Earnings: Here’s Why the Stock is Falling Now
OpenTable, Inc. (NASDAQ:OPEN) delivered a profit 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 6.70%.
OpenTable, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 19.05% to $0.5 in the quarter versus EPS of $0.42 in the year-earlier quarter.
Revenue: Rose 15.27% to $45.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: OpenTable, Inc. reported adjusted EPS income of $0.5 per share. By that measure, the company beat the mean analyst estimate of $0.47. It missed the average revenue estimate of $46.03 million.
Quoting Management: “We’re pleased with the strong growth in seated diners during the second quarter across both our North America and International business segments,” said Matt Roberts, President and CEO of OpenTable. “With 38% of our seated diners now originating from smartphones and tablets, mobile remains a strategic focus for us and we’re continuing to invest in mobile product optimization and adoption.”
Key Stats (on next page)…
Revenue increased 0.22% from $45.5 million in the previous quarter. EPS increased 11.11% from $0.45 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 $0.48 and has not changed. For the current year, the average estimate has moved up from a profit of $1.92 to a profit of $1.93 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)