Blucora (NASDAQ: BCOR), one of our top stock picks is due to announce its Q3 2013 earnings results after market hours today, the 5th of November. The company has performed very well in terms of revenue growth as well as EPS growth over the last six quarters. Let’s take a look at the company’s recent performance and what to expect in the Q3 2013 results.
The company has grown its revenues at an average rate of close to 40% in the last four quarters. While the recent drop in its revenue growth may be concerning to investors the company has still been growing at a healthy rate. The operating margin of the company had seen a dip but is quite high at approximately 18-20% of revenues.
Blucora Q3 2013
The quarter saw Blucora complete its acquisition of Monoprice, a rapidly growing online retailer of self-branded consumer electronics and accessories. The acquisition of Monoprice will add to the topline growth for the quarter. More importantly the acquisition, being an all cash deal, will be accretive to Blucora earnings, adding approximately 10cents every quarter to the earnings of the company. The company has generated healthy cash flows from its operations over the last 2 years, with the operating cash flows more than doubling over the last 5 quarters.
Blucora's Earnings History
We have looked at the strong business performance of Blucora. Let’s now take a look at the earnings history of the company. According to nasdaq.com, the company has trumped analyst expectations of earnings in each of the last 4 quarters. The earnings beat has been comprehensive with 43% to 330% earnings surprise. The analyst consensus estimate for Q3 2013 is earnings of 7 cents per share on revenues of $90.97 million. The company has beaten analyst’ consensus revenue estimates too in the last 4 quarters.
The acquisition of Monoprice will drive the earnings growth of the company. While the stock has gained over 50% in the year to date, we still believe the stock has a further upside potential. We expect to see margin expansion and higher topline growth in Q3 2013. Tomorrow we shall bring you an update on the numbers as reported in the earnings release. Keep reading to see the actual numbers and our take on the Q3 2013 performance.
To see Blucora’s current stock price, please click here: (NASDAQ: BCOR)