The 10-second takeaway
For the quarter ended Dec. 31 (Q4), KIT digital beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Gross margins expanded, operating margins dropped, net margins increased.
KIT digital tallied revenue of $70.0 million. The six analysts polled by S&P Capital IQ predicted a top line of $69.2 million on the same basis. GAAP reported sales were 82% higher than the prior-year quarter's $38.4 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 $0.05. The four earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share. GAAP EPS were $0.05 for Q4 compared to -$0.31 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 79.3%, 2,500 basis points better than the prior-year quarter. Operating margin was 5.4%, 160 basis points worse than the prior-year quarter. Net margin was 3.1%, 2,520 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $72.5 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $326.5 million. The average EPS estimate is $0.49.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 46 members out of 50 rating the stock outperform, and four members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give KIT digital a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KIT digital is outperform, with an average price target of $19.50.
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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.