The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Exlservice Holdings beat 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 contracted, operating margins expanded, net margins contracted.
Exlservice Holdings reported revenue of $102.6 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $99.5 million on the same basis. GAAP reported sales were 46% higher than the prior-year quarter's $70.0 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 $0.37. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.32 per share on the same basis. GAAP EPS of $0.29 for Q4 were 3.6% higher than the prior-year quarter's $0.28 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 39.5%, 90 basis points worse than the prior-year quarter. Operating margin was 12.6%, 150 basis points better than the prior-year quarter. Net margin was 9.3%, 250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $103.1 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $450.4 million. The average EPS estimate is $1.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 73 members out of 81 rating the stock outperform, and eight members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Exlservice Holdings a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Exlservice Holdings is outperform, with an average price target of $30.14.
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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.