Rentrak Misses Where it Counts

Rentrak (Nasdaq: RENT  ) reported earnings on June 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), Rentrak beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP loss per share contracted. GAAP loss per share shrank.

Gross margins dropped, operating margins grew, net margins increased.

Revenue details
Rentrak logged revenue of $28.5 million. The five analysts polled by S&P Capital IQ expected a top line of $27.6 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $24.6 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 -$0.06. The four earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. Non-GAAP EPS were -$0.06 for Q4 versus -$0.17 per share for the prior-year quarter. GAAP EPS were -$0.17 for Q4 compared to -$0.41 per share for the prior-year quarter.

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 42.9%, 470 basis points worse than the prior-year quarter. Operating margin was -4.8%, much better than the prior-year quarter. Net margin was -7.1%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $27.3 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $119.7 million. The average EPS estimate is $0.31.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 43 members out of 59 rating the stock outperform, and 16 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Rentrak a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rentrak is outperform, with an average price target of $23.20.

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