The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Isoftstone Holdings met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share stayed the same.
Gross margins shrank, operating margins increased, net margins were steady.
Isoftstone Holdings logged revenue of $98.6 million. The three analysts polled by S&P Capital IQ expected sales of $99.1 million on the same basis. GAAP reported sales were 34% higher than the prior-year quarter's $73.7 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 $0.18. The three earnings estimates compiled by S&P Capital IQ forecast $0.18 per share. GAAP EPS of $0.10 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.2%, 80 basis points worse than the prior-year quarter. Operating margin was 9.5%, 150 basis points better than the prior-year quarter. Net margin was 7.6%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $107.8 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $383.7 million. The average EPS estimate is $0.65.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 17 members out of 32 rating the stock outperform, and 15 members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Isoftstone Holdings 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 Isoftstone Holdings is outperform, with an average price target of $10.88.
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