Saturday, March 16, 2013

What to Expect from Renren

Renren (NYSE: RENN  ) is expected to report Q4 earnings on March 11. 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 Renren's revenues will grow 41.5% and EPS will remain in the red.

The average estimate for revenue is $46.4 million. On the bottom line, the average EPS estimate is -$0.06.

Revenue details
Last quarter, Renren notched revenue of $50.4 million. GAAP reported sales were 47% higher than the prior-year quarter's $34.2 million.

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

EPS details
Last quarter, non-GAAP EPS came in at -$0.03. GAAP EPS were -$0.04 for Q3 compared to $0.00 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 61.4%, much worse than the prior-year quarter. Operating margin was -41.0%, much worse than the prior-year quarter. Net margin was -30.6%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $173.9 million. The average EPS estimate is -$0.19.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 181 members out of 241 rating the stock outperform, and 60 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Renren a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Renren is hold, with an average price target of $4.40.

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