Can Interactive Intelligence Group Beat These Numbers?

Interactive Intelligence Group (Nasdaq: ININ  ) is expected to report Q4 earnings on Feb. 4. 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 Interactive Intelligence Group's revenues will expand 22.3% and EPS will compress -37.8%.

The average estimate for revenue is $70.6 million. On the bottom line, the average EPS estimate is $0.23.

Revenue details
Last quarter, Interactive Intelligence Group booked revenue of $59.3 million. GAAP reported sales were 14% higher than the prior-year quarter's $52.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.10. GAAP EPS were -$0.02 for Q3 against $0.16 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 65.7%, 110 basis points worse than the prior-year quarter. Operating margin was -1.4%, 1,040 basis points worse than the prior-year quarter. Net margin was -0.8%, 710 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $237.7 million. The average EPS estimate is $0.44.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 369 members out of 396 rating the stock outperform, and 27 members rating it underperform. Among 124 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give Interactive Intelligence Group a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Interactive Intelligence Group is outperform, with an average price target of $30.29.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Interactive Intelligence. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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