Isoftstone Holdings Limited
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Isoftstone Holdings Limited met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased.
Gross margins dropped, operating margins shrank, net margins expanded.
Isoftstone Holdings Limited reported revenue of $85.8 million. The five analysts polled by S&P Capital IQ expected sales of $85.7 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $61.8 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 $0.19. The six earnings estimates compiled by S&P Capital IQ predicted $0.18 per share on the same basis. GAAP EPS were $0.04 for Q4 versus -$0.25 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 35.5%, 240 basis points worse than the prior-year quarter. Operating margin was 7.3%, 140 basis points worse than the prior-year quarter. Net margin was 2.7%, 910 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $79.6 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $367.8 million. The average EPS estimate is $0.76.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 18 members out of 30 rating the stock outperform, and 12 members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Isoftstone Holdings Limited a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Isoftstone Holdings Limited is outperform, with an average price target of $16.40.
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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.