Sykes Enterprises (Nasdaq: SYKE) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Sykes Enterprises beat expectations on revenues and beat expectations on earnings per share.

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

Gross margins improved, operating margins were steady, net margins contracted.

Revenue details
Sykes Enterprises notched revenue of $278.1 million. The eight analysts polled by S&P Capital IQ hoped for revenue of $271.9 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $310.2 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 $0.32. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.22 per share. GAAP EPS were -$0.02 for Q1 against $0.28 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 35.8%, 150 basis points better than the prior-year quarter. Operating margin was 5.3%, about the same as the prior-year quarter. Net margin was -0.3%, 450 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $273.6 million. On the bottom line, the average EPS estimate is $0.21.

Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $1.15.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 141 members out of 152 rating the stock outperform, and 11 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Sykes Enterprises a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sykes Enterprises is outperform, with an average price target of $18.43.

Over the decades, small-cap stocks like Sykes Enterprises 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.