The 10-second takeaway
For the quarter ended Dec. 31 (Q4), inContact beat expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share grew.
Margins contracted across the board.
inContact booked revenue of $23.8 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $23.2 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $20.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.07. The five earnings estimates compiled by S&P Capital IQ forecast -$0.06 per share. GAAP EPS were -$0.07 for Q4 compared to -$0.03 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 41.8%, 130 basis points worse than the prior-year quarter. Operating margin was -12.2%, 780 basis points worse than the prior-year quarter. Net margin was -13.1%, 730 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $24.8 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $105.6 million. The average EPS estimate is -$0.13.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 14 members out of 21 rating the stock outperform, and seven members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give inContact 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 inContact is outperform, with an average price target of $5.13.
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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