OpenTable, Inc. (NASDAQ: OPEN) is set to be volatile after earnings. The online restaurant reservation and information site reported earnings as follows: Non-GAAP EPS of $0.37 on revenue growth of 21% year over year to $37.2 million. Estimates were $0.30 EPS on 19% sales growth to $36.81 million.
On a net earnings basis, the figure was $0.29 EPS. The company also reported that it grew its installed restaurants by 25% and grew its seated diners by 39% year over year. One note stood out from the company: “The business continues to deliver solid operating margins and cash flows which enabled us to complete the $50 million share repurchase in early January 2012.”
OpenTable shares rose 2.6% to $51.45 after having been down in the red and under $48.00 at one point. Now the stock is back around $53.00 in the after hours trading session and the stock’s 52-week trading range is $35.60 to $118.66.
Our take: The online restaurant reservation player has more implied competition and it still trades at almost 35-times expected 2012 earnings estimates.
Until we have guidance from the company’s earnings conference call, we would treat this as unfinished business. If guidance is offered up, the estimates are $0.34 EPS on $40.28 million in sales for the quarter we are in now.
JON C. OGG
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