QuinStreet, Inc. (NASDAQ:QNST) 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.
QuinStreet, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 23.81% to $0.16 in the quarter versus EPS of $0.21 in the year-earlier quarter.
Revenue: Decreased 15.07% to $79 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: QuinStreet, Inc. reported adjusted EPS income of $0.16 per share. By that measure, the company beat the mean analyst estimate of $0.13. It beat the average revenue estimate of $77.65 million.
Quoting Management: “Financial results came in at the higher end of the outlook we provided last quarter due to strong execution in our core client verticals,” commented Doug Valenti, QuinStreet CEO. “We continued to make good progress on initiatives to return to growth. Looking ahead, we expect June quarter revenue to be in the range of $72 to $77 million, consistent with typical seasonality. Adjusted EBITDA margin is expected to be in the mid-teens. While we work to restore growth, we continue to manage the Company with characteristic financial discipline, generating attractive EBITDA and free cash flow margins, with minimal non-discretionary demands for capital.”
Key Stats (on next page)…
Revenue increased 10.1% from $71.75 million in the previous quarter. EPS increased 23.08% from $0.13 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 $0.18 to a profit $0.15. For the current year, the average estimate has moved down from a profit of $0.63 to a profit of $0.55 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)