Why We Love Blucora: Q3 2013 Earnings Preview

BCOR Q3 2013 earnings preview

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.

Past Performance

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 fundamentals

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)

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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