GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

AOL Releases Q1 2014 Earnings on May 7, 2014

May 07, 2014 | About:
Karen Rogers

Karen Rogers

1 followers

America Online Inc. (AOL) will release its Q1 2014 earnings report at 8:00 a.m., EST, on Wednesday, May 7, 2014. A webcast discussing the earnings report is available through AOL’s Investor Relations site here starting at 8:00 a.m., EST. AOL provides online media, advertising and internet services to individuals and businesses worldwide.

Analysts Expect

  • EPS ranging from $0.30 to $0.59 with a target of $0.46.
  • Revenue ranging from $2.1 billion to $2.6 billion with a target of $2.5 billion.

Corporate Recap

AOL shows steady year-over-year annual growth. The company either meets or exceeds the Street’s revenue estimates.

Revenue

2014

2013

2012

Estimate

$2.5B

$2.3B

$2.2B

Actual

 

$2.3B

$2.2B

Difference

 

+0.00

+0.00

AOL’s earnings reports often come with a positive surprise. The company has exceeded Street estimates in the past three consecutive quarters. Comparing fourth quarter 2013 EPS to the same quarter for the prior year shows that the EPS grew 4.88%. Comparing the annual EPS for the current year to the previous year shows that AOL’s EPS increased by 8.22%

EPS

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Estimate

$0.46

$0.62

$0.51

$0.43

Actual

 

$0.64

$ 0.55

$0.46

Difference

 

+0.02

+0.04

+

Surprise %

 

3.34%

8.27%

6.06%

Competitors

AOL’s primary competitors are Microsoft (MSFT), Google (GOOG) and Yahoo (YHOO). Microsoft’s third quarter 2014 earnings, announced on April 24, 2014, came in at $20.4 billion. On April 16, 2014, Google’s first quarter 2014 earnings were $15.4 billion. Yahoo’s first quarter 2014 earnings came in at $1.133 million. Analysts will be watching AOL’s earnings to see how it compares with its competitors.

 

AOL

MSFT

GOOG

YHOO

Price

$43.90

$39.06

$522.57

$36.49

Total Revenue

$679M

$20.4B

$15.4B

$1.1B

EPS (TTM)

$1.13

$2.67

$18.42

$1.20

Projected EPS Growth for 2015

17.59%

6.90%

18.25% 13.05%

Trade Considerations

Analysts are bearish on AOL. Of the 18 firms covering AOL, 13 analysts rate the company as underperform or neutral and 5 rate the stock as buy. The stock formed a head and shoulders price pattern, hitting a high of $53.28 on Jan. 16, 2014 and a low of $40.52 on March 17, 2014. Since then, the stock continues to range trade with support and resistance at $40.52 and $45.86, respectively. Investors and analysts wait to see if the earnings report will signal if AOL is moving into an uptrend, downtrend or remaining range bound.

Disclosure: I have no position in any of the companies mentioned in this article and have no intention of opening a position in the next 72 hours.


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide