Telenav Beats on Both Top and Bottom Lines

Telenav (Nasdaq: TNAV  ) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q3), Telenav beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Telenav logged revenue of $55.0 million. The four analysts polled by S&P Capital IQ expected net sales of $52.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.09. The two earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. GAAP EPS of $0.09 for Q3 were 47% lower than the prior-year quarter's $0.17 per share.

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 60.6%, much worse than the prior-year quarter. Operating margin was 7.4%, much worse than the prior-year quarter. Net margin was 7.0%, 570 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $43.9 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $192.4 million. The average EPS estimate is $0.14.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 110 members out of 115 rating the stock outperform, and five members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Telenav a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Telenav is outperform, with an average price target of $7.45.

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