XO Group Earnings: Here’s Why Investors are Not Happy Now

XO Group (NYSE:XOXO) 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 0.85%.

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XO Group Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 250% to $0.07 in the quarter versus EPS of $0.02 in the year-earlier quarter.

Revenue: Rose 1.75% to $30.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: XO Group reported adjusted EPS income of $0.07 per share. By that measure, the company beat the mean analyst estimate of $0.06. It missed the average revenue estimate of $31.3 million.

Quoting Management: “We are pleased with the strength in our advertising businesses this quarter, with strength across all platforms online and offline. However, we believe we still have a lot of opportunity to drive total revenue growth,” said Chief Executive Officer, David Liu. “Our teams are working tirelessly to create new products, tools, and services across our brands and platforms. To this end, we recently launched our mobile optimized ecommerce site, and in the coming months we plan to roll out additional products which will connect our brides, newlyweds, and new parents with the relevant retailers and vendors during the critical ‘five years of firsts’ lifestages.”

Key Stats (on next page)…

Revenue decreased 5.84% from $32.18 million in the previous quarter. EPS decreased 46.15% 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 $0.16 to a profit $0.15. For the current year, the average estimate has moved down from a profit of $0.41 to a profit of $0.39 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)