The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AsiaInfo-Linkage beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins grew, net margins expanded.
AsiaInfo-Linkage reported revenue of $165.7 million. The four analysts polled by S&P Capital IQ looked for a top line of $153.9 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $131.1 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 $0.21. The two earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. GAAP EPS of $0.21 for Q4 were 50% higher than the prior-year quarter's $0.14 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 40.9%, 50 basis points worse than the prior-year quarter. Operating margin was 9.1%, 70 basis points better than the prior-year quarter. Net margin was 9.4%, 140 basis points better than the prior-year quarter.
Next year's average estimate for revenue is $595.2 million. The average EPS estimate is $0.59.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 288 members out of 328 rating the stock outperform, and 40 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give AsiaInfo-Linkage a green thumbs-up, and 15 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 $12.78.
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