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Karen Rogers
Karen Rogers
Articles (28) 

AOL Releases Q1 2014 Earnings on May 7, 2014

May 07, 2014 | About:

America Online Inc. (NYSE: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 (NASDAQ:MSFT), Google (NASDAQ:GOOG) and Yahoo (NASDAQ: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.


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