The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Infosys beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share expanded significantly.
Margins expanded across the board.
Infosys reported revenue of $1.8 billion. The 24 analysts polled by S&P Capital IQ predicted net sales of $1.7 billion. Sales were 14% higher than the prior-year quarter's $1.6 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.80. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.80 per share. GAAP EPS of $0.80 for Q3 were 16% higher than the prior-year quarter's $0.69 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 43.0%, 50 basis points better than the prior-year quarter. Operating margin was 31.0%, 80 basis points better than the prior-year quarter. Net margin was 25.4%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.8 billion. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $6.7 billion. The average EPS estimate is $2.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,126 members out of 1,162 rating the stock outperform, and 36 members rating it underperform. Among 306 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 295 give Infosys a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Infosys is hold, with an average price target of $60.47.
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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. 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.