The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Interxion Holding met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Interxion Holding booked revenue of $96.1 million. The 11 analysts polled by S&P Capital IQ looked for sales of $96.6 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $83.7 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 $0.12. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. Non-GAAP EPS of $0.12 for Q4 were 40% lower than the prior-year quarter's $0.20 per share. GAAP EPS of $0.11 for Q4 were 48% lower than the prior-year quarter's $0.21 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 60.3%, 10 basis points worse than the prior-year quarter. Operating margin was 20.2%, 770 basis points worse than the prior-year quarter. Net margin was 7.8%, 870 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $100.6 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $421.7 million. The average EPS estimate is $0.85.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 19 members out of 21 rating the stock outperform, and two members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Interxion Holding 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 Interxion Holding is buy, with an average price target of $27.29.
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