Virtusa (Nasdaq: VRTU ) reported earnings on Nov. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Virtusa beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins increased, net margins expanded.
Virtusa reported revenue of $80.5 million. The eight analysts polled by S&P Capital IQ expected to see a top line of $79.5 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $70.3 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 $0.23. The six earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. GAAP EPS of $0.23 for Q2 were 28% higher 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 34.3%, 110 basis points worse than the prior-year quarter. Operating margin was 9.2%, 140 basis points better than the prior-year quarter. Net margin was 7.2%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $82.6 million. On the bottom line, the average EPS estimate is $0.28.
Next 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 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 $20.33.
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