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.
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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.
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