ReachLocal, Inc. (NASDAQ:RLOC) 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.
ReachLocal, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.10 in the quarter versus EPS of $-0.03 in the year-earlier quarter.
Revenue: Rose 8.42% to $112.76 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: ReachLocal, Inc. reported adjusted EPS income of $0.10 per share. By that measure, the company beat the mean analyst estimate of $-0.01. It missed the average revenue estimate of $122.74 million.
Quoting Management: “ReachLocal posted solid first quarter results, highlighted by strong international revenue which grew to 32% of our total revenue for the quarter,” said Zorik Gordon, Chief Executive Officer. “The new initiatives we announced at our analyst day on February 21, 2013 are all on track, with ClubLocal scheduled to open in the San Francisco Bay Area in the current quarter, the beta introduction of our ReachCommerce SaaS platform also set for this quarter, and the launch of ReachEdge, our SaaS-based sites and marketing automation solution, set to launch in the second half of 2013.”
Key Stats (on next page)…
Revenue decreased 6.23% from $120.25 million in the previous quarter. EPS increased to $0.10 in the quarter versus EPS of $-0.01 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 $0.02 to a profit $0.01. For the current year, the average estimate has moved down from a profit of $0.11 to a profit of $0.08 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)