The 10-second takeaway
For the quarter ended March 31 (Q1), Syntel met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share increased.
Gross margins contracted, operating margins grew, net margins increased.
Syntel notched revenue of $189.1 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $188.0 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $170.7 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 $1.11. The nine earnings estimates compiled by S&P Capital IQ predicted $1.04 per share. GAAP EPS of $1.11 for Q1 were 13% higher than the prior-year quarter's $0.98 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 41.1%, 70 basis points worse than the prior-year quarter. Operating margin was 27.4%, 130 basis points better than the prior-year quarter. Net margin was 24.5%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $197.5 million. On the bottom line, the average EPS estimate is $1.04.
Next year's average estimate for revenue is $803.4 million. The average EPS estimate is $4.44.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 205 members out of 219 rating the stock outperform, and 14 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Syntel 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 Syntel is outperform, with an average price target of $65.75.
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