Will Advisory Board Beat These Analyst Estimates?

Advisory Board (Nasdaq: 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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