Will Advisory Board Beat These Analyst Estimates?

Advisory Board (NAS: ABCO) is expected to report Q3 earnings on Feb. 6. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Advisory Board's revenues will increase 15.7% and EPS will grow 30.4%.

The average estimate for revenue is $115.7 million. On the bottom line, the average EPS estimate is $0.30.


Revenue details
Last quarter, Advisory Board chalked up revenue of $110.8 million. GAAP reported sales were 21% higher than the prior-year quarter's $91.5 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.31. GAAP EPS of $0.21 for Q2 were 40% higher than the prior-year quarter's $0.15 per share.

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

Recent performance
For the preceding quarter, gross margin was 48.5%, 40 basis points better than the prior-year quarter. Operating margin was 11.0%, 10 basis points worse than the prior-year quarter. Net margin was 6.8%, 110 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $449.1 million. The average EPS estimate is $1.21.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 44 members out of 78 rating the stock outperform, and 34 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Advisory Board a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advisory Board is outperform, with an average price target of $46.38.

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The article Will Advisory Board Beat These Analyst Estimates? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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