The 10-second takeaway
For the quarter ended March 31 (Q1), Interxion Holding met expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins grew across the board.
Interxion Holding reported revenue of $87.7 million. The nine analysts polled by S&P Capital IQ predicted sales of $87.7 million on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $82.1 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 $0.17. The eight earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS of $0.17 for Q1 were 143% higher than the prior-year quarter's $0.07 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 59.7%, 250 basis points better than the prior-year quarter. Operating margin was 25.9%, 230 basis points better than the prior-year quarter. Net margin was 13.2%, 830 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $88.8 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $366.5 million. The average EPS estimate is $0.66.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 14 members out of 17 rating the stock outperform, and three members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Interxion Holding a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Interxion Holding is buy, with an average price target of $21.57.
Over the decades, small-cap stocks like Interxion Holding have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.
- Add Interxion Holding to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the 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 don't 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.