Focus Media Beats By $0.04 on Strong In-Store Ad Network Growth; Stock Up 11% in After-Hours Trading (FMCN 3Q05 Earnings)

Focus Media (ticker: FMCN) reported Q3 2005 earnings results today that beat consensus EPS estimates (1 analyst) by $0.04. Key stats from the quarter:

Q3 Results
(all percentage changes and comparisons are year on year, unless stated otherwise)

• Total revenue rose 146.0% to $19.5 million, and rose 33.5% sequentially. Previous management guidance of $17.0 - $17.5 million.
• Total advertising service revenue rose 170.9% to $19.1 million, and rose 33.4% sequentially.
• Total advertising service revenue - commercial locations - rose 145.2% to $17.3 million.
• Total advertising service revenue - in-store locations - rose from zero to $1.8 million, and rose 435.3% sequentially.
• Total advertising equipment revenue fell 57.5% to $366,403.
• Gross margin was 59.1% vs 70.5%, and vs 60.6% in Q2.
• Total operating expenses rose 147.0% to $5.0 million.
• General and administrative expenses rose 111.5% to $2.3 million.
• Selling and marketing expenses rose 188.9% to $2.7 million.
• Operating income rose 82.9% to $6.5 million.
• Operating margin was 33.2% vs 44.7%.
• Net income rose from a loss of $999,034 to a gain of $7.1 million, and rose 64.0% sequentially. Previous management guidance of $6.3 - $6.5 million.
• Net margin was 36.6% vs 29.8% in Q2.
• Diluted EPS of $0.19 vs a loss of $0.07 and vs consensus estimate of $0.15.

Balance Sheet (as of September 30, 2005)

• Cash and bank balances of $84.0 million.
• Investment in available-for-sale securities of $35.0 million.

Q4 Guidance

• Total revenue of $22.0 - $23.0 million.
• Net income of $8.7 - $9.1 million.

FMCN chart.