Virtusa (Nasdaq: VRTU ) is expected to report Q2 earnings on Oct. 30. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Virtusa's revenues will grow 13.1% and EPS will expand 27.8%.
The average estimate for revenue is $79.5 million. On the bottom line, the average EPS estimate is $0.23.
Last quarter, Virtusa booked revenue of $76.2 million. GAAP reported sales were 25% higher than the prior-year quarter's $61.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, EPS came in at $0.24. GAAP EPS of $0.24 for Q1 were 50% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 34.9%, 290 basis points worse than the prior-year quarter. Operating margin was 9.0%, 120 basis points better than the prior-year quarter. Net margin was 8.1%, 160 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $324.2 million. The average EPS estimate is $1.08.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 98 members out of 103 rating the stock outperform, and five members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 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 buy, with an average price target of $18.67.
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