The 10-second takeaway
For the quarter ended June 30 (Q2), AsiaInfo-Linkage met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
AsiaInfo-Linkage logged revenue of $126.3 million. The six analysts polled by S&P Capital IQ anticipated sales of $127.4 million on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $116.2 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 $0.09. The five earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.09 for Q2 were 80% lower than the prior-year quarter's $0.45 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 38.5%, 370 basis points worse than the prior-year quarter. Operating margin was 1.6%, 1,090 basis points worse than the prior-year quarter. Net margin was 4.9%, 2,350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $135.0 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $532.1 million. The average EPS estimate is $0.53.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 293 members out of 329 rating the stock outperform, and 36 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give AsiaInfo-Linkage a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AsiaInfo-Linkage is hold, with an average price target of $15.11.
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