The 10-second takeaway
For the quarter ended March 31 (Q1), VanceInfo Technologies beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
VanceInfo Technologies reported revenue of $86.1 million. The eight analysts polled by S&P Capital IQ expected sales of $80.2 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $57.4 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 $0.16. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share. GAAP EPS of $0.08 for Q1 were 47% lower than the prior-year quarter's $0.15 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 31.4%, 600 basis points worse than the prior-year quarter. Operating margin was 3.7%, 800 basis points worse than the prior-year quarter. Net margin was 3.9%, 820 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $88.7 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $362.8 million. The average EPS estimate is $0.90.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 237 members out of 273 rating the stock outperform, and 36 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give VanceInfo Technologies a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VanceInfo Technologies is outperform, with an average price target of $15.32.
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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.