Rosetta Stone, Inc. (NYSE: RST) just gave us its first earnings report that had a full quarter’s worth public data in it. The language learning software solution provider did not disappoint. In fact, this is a solid report.
The company posted quarterly figures of $0.23 EPS on $56.5 million in revenues. The estimates from Thomson Reuters were $0.13 EPS and $54.7 million in revenues. If you include the costs associated with coming public and some other items, its loss was -$0.42 EPS.
Guidance looks ample here as well. The company sees the coming quarter coming in at $0.33 to $0.35 EPS and revenues of $64.5 million to $66.5 million. Thomson Reuters has estimates listed as $0.30 EPS and almost $65.3 million in revenues.
For the fiscal year, these figures were put at $0.56 to $0.60 EPS net, but $1.22 to $1.26 non-GAAP EPS. Revenues were put at $245 to $248 million. Thomson Reuters had those figures listed as $1.04 non-GAAP EPS and $242.8 million in revenues.
Rosetta Stone shares closed up 5% at $27.31 with the strong market today, and shares are up around $28.75 in the after-hours session. Its post-IPO range has been $21.33 to $32.54.
We now have some forward valuation figures to throw out there. The market cap before the effect of after-hours trading was $555 million. For this year at the mid-point of guidance, we have forward multiples of 22-times earnings and right at 2.25-times revenues.
JON C. OGG
JULY 30, 2009
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