Vocus Misses Where it Counts

Vocus (Nasdaq: VOCS  ) reported earnings on April 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Vocus met expectations on revenues and missed estimates on earnings per share.

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

Gross margins dropped, operating margins contracted, net margins expanded.

Revenue details
Vocus reported revenue of $46.3 million. The seven analysts polled by S&P Capital IQ looked for a top line of $46.5 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $34.9 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 $0.09. The eight earnings estimates compiled by S&P Capital IQ averaged $0.10 per share. Non-GAAP EPS of $0.09 for Q1 were 350% higher than the prior-year quarter's $0.02 per share. GAAP EPS were -$0.41 for Q1 versus -$0.57 per share for the prior-year quarter.

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

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Margin details
For the quarter, gross margin was 78.9%, 30 basis points worse than the prior-year quarter. Operating margin was -16.6%, 110 basis points worse than the prior-year quarter. Net margin was -17.6%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $48.2 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $199.3 million. The average EPS estimate is $0.52.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 77 members out of 110 rating the stock outperform, and 33 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Vocus a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vocus is outperform, with an average price target of $23.00.

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