The 10-second takeaway
For the quarter ended Sep. 30 (Q3), AsiaInfo-Linkage beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Margins contracted across the board.
AsiaInfo-Linkage reported revenue of $132.2 million. The five analysts polled by S&P Capital IQ anticipated a top line of $130.5 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $119.3 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 $0.06. The four earnings estimates compiled by S&P Capital IQ forecast $0.07 per share. GAAP EPS of $0.06 for Q3 were 67% lower than the prior-year quarter's $0.18 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 37.3%, 660 basis points worse than the prior-year quarter. Operating margin was 1.7%, 1,110 basis points worse than the prior-year quarter. Net margin was 3.5%, 760 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $147.2 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $527.0 million. The average EPS estimate is $0.38.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 289 members out of 326 rating the stock outperform, and 37 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give AsiaInfo-Linkage a green thumbs-up, and 13 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 $14.57.
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