Syntel (Nasdaq: SYNT ) reported earnings on Oct. 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Syntel met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Margins grew across the board.
Syntel notched revenue of $186.4 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $189.1 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $167.6 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 $1.23. The nine earnings estimates compiled by S&P Capital IQ predicted $0.96 per share. GAAP EPS of $1.23 for Q3 were 95% higher than the prior-year quarter's $0.63 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 45.5%, 570 basis points better than the prior-year quarter. Operating margin was 29.9%, 450 basis points better than the prior-year quarter. Net margin was 27.6%, 1,200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $195.3 million. On the bottom line, the average EPS estimate is $1.05.
Next year's average estimate for revenue is $732.7 million. The average EPS estimate is $4.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 191 members out of 204 rating the stock outperform, and 13 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Syntel 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 Syntel is outperform, with an average price target of $66.00.
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