Internap Network Services
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Internap Network Services met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Gross margins grew, operating margins dropped, and net margins expanded.
Internap Network Services reported revenue of $62.8 million. The six analysts polled by S&P Capital IQ foresaw a top line of $62.5 million on the same basis. GAAP reported sales were 4.7% higher than the prior-year quarter's $60.0 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 $0.01. The three earnings estimates compiled by S&P Capital IQ predicted -$0.02 per share on the same basis. GAAP EPS were $0.08 for Q4 versus -$0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.8%, 150 basis points better than the prior-year quarter. Operating margin was 0.4%, 50 basis points worse than the prior-year quarter. Net margin was 6.7%, 740 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $65.3 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $271.4 million. The average EPS estimate is $0.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 257 members out of 276 rating the stock outperform, and 19 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Internap Network Services a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Internap Network Services is outperform, with an average price target of $7.50.
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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.