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Bear Of The Day: comScore (SCOR)

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comScore (SCOR - Free Report) is a Zacks Rank #5 (Strong Sell) and checks in with an F for the Value Style Score and a D for the Growth Style Score.  The company posted a beat of the Zacks Consensus Estimate on  February 28, but it is now the Bear of the Day.  Let's take a look at why that is the case.

Description

comScore, Inc. is a global leader in measuring the digital world. This capability is based on a massive, global cross-section of more than two million consumers who have given comScore permission to confidentially capture their browsing and transaction behavior, including online and offline purchasing. comScore panelists also participate in survey research that captures and integrates their attitudes and intentions. Through its proprietary technology, comScore measures what matters across a broad spectrum of behavior and attitudes. comScore analysts apply this deep knowledge of customers and competitors to help clients design powerful marketing strategies and tactics that deliver superior ROI. comScore services are used by global leaders such as AOL, Microsoft, Yahoo!, Verizon, Best Buy, The Newspaper Association of America, Tribune Interactive, ESPN, Fox Sports, Nestle, MBNA, Starcom USA, Universal McCann, the United States Postal Service, Merck and Expedia.

Recent Earnings

Although the chart show that SCOR beat earnings, I see other data that suggest that SCOR missed in a big way.  I see a loss of $0.46 compared to an expected loss of $0.21 on the bottom line.

Revenue of $109M was good for 6% growth and topped the $104.8M estimate.

Prior to this report, Zacks shows that SCOR missed the prior three quarter with an average negative earnings surprise of 52%.

Estimates

The estimate data on the detailed estimate page is not fully functioning at the moment, but I do see that there were negative revisions over the last 30 and 60 days.

If you look at the agreement section, you can see there were negative earnings estimate revisions for this quarter, next quarter and for the full year.

Valuation

Without a positive earnings number, there is no PE, but I do see a 2.3x book multiple which is where value players should be happy.  They tend to like a book multiple below 3x.  A price to sales multiple of 3x is fairly rich considering the low growth profile.

Margins are negative, but they are moving in the right direction.  That said, SCOR will likely not post positive earnings this year or next.

Chart

 

comScore, Inc. Price and Consensus

comScore, Inc. Price and Consensus | comScore, Inc. Quote

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