The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TNS met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.
Gross margin dropped, operating margin dropped, and net margin increased.
TNS reported revenue of $140.3 million. The four analysts polled by S&P Capital IQ expected sales of $140.5 million on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $135.1 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 $0.68. The four earnings estimates compiled by S&P Capital IQ predicted $0.58 per share on the same basis. GAAP EPS were $0.55 for Q4 against -$0.12 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 50.8%, 30 basis points worse than the prior-year quarter. Operating margin was 9.5%, 130 basis points worse than the prior-year quarter. Net margin was 9.7%, 1,200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $139.1 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $580.5 million. The average EPS estimate is $2.36.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 63 members out of 87 rating the stock outperform, and 24 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give TNS a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TNS is outperform, with an average price target of $25.75.
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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.