Telenav Beats on Revenue, Matches Expectations on EPS

Telenav (Nasdaq: TNAV  ) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Telenav beat slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
Telenav booked revenue of $50.6 million. The five analysts polled by S&P Capital IQ expected to see net sales of $49.9 million on the same basis. GAAP reported sales were 4.8% lower than the prior-year quarter's $53.2 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 $0.02. The four earnings estimates compiled by S&P Capital IQ averaged $0.02 per share. GAAP EPS of $0.02 for Q2 were 91% lower than the prior-year quarter's $0.23 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 64.6%, 1,670 basis points worse than the prior-year quarter. Operating margin was 2.9%, 1,920 basis points worse than the prior-year quarter. Net margin was 1.8%, 1,750 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $50.0 million. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $196.6 million. The average EPS estimate is $0.00.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 109 members out of 114 rating the stock outperform, and five members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Telenav a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Telenav is hold, with an average price target of $7.20.

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