The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AsiaInfo-Linkage beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
AsiaInfo-Linkage reported revenue of $119.3 million. The six analysts polled by S&P Capital IQ predicted net sales of $117.1 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $114.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.18. The five earnings estimates compiled by S&P Capital IQ predicted $0.14 per share on the same basis. GAAP EPS of $0.14 for Q3 were 33% 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 41.4%, 390 basis points worse than the prior-year quarter. Operating margin was 8.4%, 570 basis points worse than the prior-year quarter. Net margin was 8.0%, 560 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $130.9 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $475.0 million. The average EPS estimate is $1.01.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 293 members out of 332 rating the stock outperform, and 39 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give AsiaInfo-Linkage a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AsiaInfo-Linkage is outperform, with an average price target of $17.02.
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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.