The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Wipro beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share dropped.
Margins dropped across the board.
Wipro reported revenue of $1.9 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $1.8 billion. Sales were 6.6% higher than the prior-year quarter's $1.8 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.11. The seven earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. GAAP EPS of $0.11 for Q3 were 7.5% lower than the prior-year quarter's $0.12 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 29.5%, 220 basis points worse than the prior-year quarter. Operating margin was 16.3%, 200 basis points worse than the prior-year quarter. Net margin was 14.7%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2 billion. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $7.3 billion. The average EPS estimate is $0.49.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 394 members out of 427 rating the stock outperform, and 33 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Wipro 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 Wipro is hold, with an average price target of $10.20.
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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.