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.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not VanceInfo Technologies makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add VanceInfo Technologies to My Watchlist.