$ABTL,...Autobytel +21.7% on big Q4 EPS beat, strong 2015 guidance
Autobytel (NASDAQ:ABTL) has surged to its highest levels since last July after blowing away Q4 EPS estimates (while posting nearly in-line revenue) and guiding for 2015 EPS of $0.97-$1.16, well above a $0.46 consensus. 2015 revenue guidance of $114M-$120M is in-line with a $118.1M consensus.
Boosting Q4 EPS: Operating expenses fell to 32.5% of revenue from 32.9% in Q3 and 34.8% a year ago. Also: Gross margin was 40%, down slightly from Q3's 40.2% but up from 39.1% a year ago.
Auto leads/services revenue rose 23% Y/Y to $22.8M, with retail revenue rising 52% to $11.3M and wholesale just 3% to $11.5M. Ad revenue rose 127% to $1.6M thanks to the Jumpstart deal, which boosted site traffic.
Lake Street Capital's Eric Martinuzzi (Buy) notes the results follow Q4 purchases from 9 insiders, and that a mix shift towards ad revenue (near-100% gross margin) is lifting EPS. He does note Autobytel continues to see its served dealer count decline, but adds management expects the figure to bottom in 2015.
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