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Corporate Executive Board Beats on EPS But GAAP Results Lag

Thursday - 5/2/2013, 2:00am  ET

Corporate Executive Board reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Corporate Executive Board missed slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
Corporate Executive Board logged revenue of $190.3 million. The seven analysts polled by S&P Capital IQ expected to see sales of $193.4 million on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $128.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.67. The seven earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. Non-GAAP EPS of $0.67 for Q1 were 43% higher than the prior-year quarter's $0.47 per share. GAAP EPS of $0.33 for Q1 were 28% lower than the prior-year quarter's $0.46 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 62.7%, 330 basis points worse than the prior-year quarter. Operating margin was 12.5%, 740 basis points worse than the prior-year quarter. Net margin was 5.9%, 620 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $202.9 million. On the bottom line, the average EPS estimate is $0.68.

Next year's average estimate for revenue is $828.0 million. The average EPS estimate is $2.88.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Corporate Executive Board is outperform, with an average price target of $57.57.

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This article was originally published as Corporate Executive Board Beats on EPS But GAAP Results Lagon Fool.com

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