Virtusa (Nasdaq: VRTU ) reported earnings on May 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), Virtusa met expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Gross margins contracted, operating margins grew, net margins dropped.
Virtusa logged revenue of $74.2 million. The eight analysts polled by S&P Capital IQ wanted to see a top line of $74.4 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $58.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.23. The six earnings estimates compiled by S&P Capital IQ anticipated $0.23 per share. GAAP EPS of $0.23 for Q4 were 9.5% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.6%, 130 basis points worse than the prior-year quarter. Operating margin was 9.5%, 320 basis points better than the prior-year quarter. Net margin was 7.8%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $76.8 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $326.4 million. The average EPS estimate is $1.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 96 members out of 102 rating the stock outperform, and six members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Virtusa a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Virtusa is outperform, with an average price target of $20.00.
Over the decades, small-cap stocks like Virtusa have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.
- Add Virtusa to My Watchlist.