The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Interxion Holding met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins increased, and net margins contracted.
Interxion Holding booked revenue of $83.7 million. The eight analysts polled by S&P Capital IQ expected revenue of $83.6 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $74.5 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 averaged $0.12 per share on the same basis. GAAP EPS of $0.21 for Q4 were 22% lower than the prior-year quarter's $0.27 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 60.4%, 230 basis points better than the prior-year quarter. Operating margin was 27.2%, 230 basis points better than the prior-year quarter. Net margin was 16.5%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $88.5 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $378.8 million. The average EPS estimate is $0.68.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 10 members out of 13 rating the stock outperform, and three members rating it underperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Interxion Holding a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Interxion Holding is buy, with an average price target of $17.37.
Over the decades, small-cap stocks like Interxion Holding have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Interxion Holding to My Watchlist.
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.