MakeMyTrip Increases Sales but Misses Estimates on Earnings

MakeMyTrip (Nasdaq: MMYT  ) reported earnings on Feb. 7. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share.

Gross margins expanded, operating margins contracted, net margins shrank.

Revenue details
MakeMyTrip reported revenue of $22.4 million. The five analysts polled by S&P Capital IQ expected to see revenue of $21.9 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $53.8 million.

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 -$0.07. The five earnings estimates compiled by S&P Capital IQ forecast $0.03 per share. GAAP EPS were -$0.14 for Q3 compared to $0.00 per share for the prior-year quarter.

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 35.0%, 590 basis points better than the prior-year quarter. Operating margin was -9.6%, 1,200 basis points worse than the prior-year quarter. Net margin was -8.2%, 830 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $22.0 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $88.4 million. The average EPS estimate is $0.16.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 45 members out of 66 rating the stock outperform, and 21 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give MakeMyTrip a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MakeMyTrip is outperform, with an average price target of $15.67.

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