Phoenix New Media Beats on Both Top and Bottom Lines

Phoenix New Media (NYSE: FENG  ) reported earnings on May 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Phoenix New Media beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share stayed the same. GAAP earnings per share grew significantly.

Gross margins shrank, operating margins were steady, net margins expanded.

Revenue details
Phoenix New Media notched revenue of $45.8 million. The two analysts polled by S&P Capital IQ anticipated a top line of $45.3 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $37.9 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 $0.07. The two earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. Non-GAAP EPS of $0.07 were the same as the prior-year quarter. GAAP EPS of $0.08 for Q1 were 33% higher than the prior-year quarter's $0.06 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 48.9%, 90 basis points worse than the prior-year quarter. Operating margin was 11.4%, much about the same as the prior-year quarter. Net margin was 13.9%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $51.5 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $213.7 million. The average EPS estimate is $0.27.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with five members out of 14 rating the stock outperform, and nine members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), one give Phoenix New Media a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Phoenix New Media is outperform, with an average price target of $4.53.

Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Phoenix New Media on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Add Phoenix New Media to My Watchlist.