Does The Street Have United Online Figured Out?

United Online (Nasdaq: UNTD  ) is expected to report Q1 earnings on April 30. 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 United Online's revenues will expand 0.5% and EPS will decrease -23.8%.

The average estimate for revenue is $243.4 million. On the bottom line, the average EPS estimate is $0.16.

Revenue details
Last quarter, United Online booked revenue of $219.0 million. GAAP reported sales were 0.5% higher than the prior-year quarter's $217.9 million.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.14. GAAP EPS were -$0.15 for Q4 versus $0.14 per share for the prior-year quarter.

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 45.8%, 400 basis points worse than the prior-year quarter. Operating margin was 5.8%, 730 basis points worse than the prior-year quarter. Net margin was -5.7%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $868.7 million. The average EPS estimate is $0.55.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 254 members out of 281 rating the stock outperform, and 27 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give United Online 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 United Online is buy, with an average price target of $7.41.

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