QuinStreet Earnings: Not Enough to Please Wall Street Analyst Estimates

QuinStreet, Inc. (NASDAQ:QNST) delivered a profit and missed Wall Street’s expectations, AND 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 0.27%.

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QuinStreet, Inc. Earnings Cheat Sheet

Results: Net income increased 26.41% to $5.6 million (13 cents per diluted share) in the quarter versus a net gain of $4.43 million in the year-earlier quarter.

Revenue: Decreased 20.74% to $71.75 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: QuinStreet, Inc. reported adjusted net income of 13 cents per share. By that measure, the company missed the mean analyst estimate of $0.15. It missed the average revenue estimate of $77.16 million.

Quoting Management: “Visibility remains limited due to continued product and market transitions in our core Financial Services and Education verticals…

…Our current expectation for revenue in the March quarter is in the $75 to $80 million range. Adjusted EBITDA margin will likely be in the mid-teens for the quarter, as we will continue to invest in key initiatives for the long term,” stated Doug Valenti, QuinStreet CEO.

Key Stats:

Revenue decreased 8.75% from $78.63 million in the previous quarter. Net income increased to $5.6 million in the quarter versus a net loss of $140,000 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 $0.23 to a profit $0.19. For the current year, the average estimate has moved down from a profit of $0.84 to a profit of $0.67 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)