The 10-second takeaway
For the quarter ended Dec. 31 (Q4), VanceInfo Technologies beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
VanceInfo Technologies notched revenue of $87.2 million. The eight analysts polled by S&P Capital IQ expected a top line of $83.7 million on the same basis. GAAP reported sales were 46% higher than the prior-year quarter's $59.6 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 $0.20. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share on the same basis. GAAP EPS of $0.11 for Q4 were 42% lower than the prior-year quarter's $0.19 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 32.4%, 500 basis points worse than the prior-year quarter. Operating margin was 4.4%, 990 basis points worse than the prior-year quarter. Net margin was 5.7%, 840 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $76.1 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $346.2 million. The average EPS estimate is $0.99.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 237 members out of 274 rating the stock outperform, and 37 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give VanceInfo Technologies a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VanceInfo Technologies is outperform, with an average price target of $17.81.
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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.