Isoftstone Holdings Limited
The 10-second takeaway
For the quarter ended March 31 (Q1), Isoftstone Holdings Limited beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Isoftstone Holdings Limited tallied revenue of $86.3 million. The four analysts polled by S&P Capital IQ expected to see a top line of $79.6 million on the same basis. GAAP reported sales were 52% higher than the prior-year quarter's $56.9 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 $0.12. The four earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. GAAP EPS of $0.06 for Q1 were 40% lower than the prior-year quarter's $0.10 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 32.2%, 390 basis points worse than the prior-year quarter. Operating margin was 5.2%, 130 basis points worse than the prior-year quarter. Net margin was 3.8%, 520 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $89.5 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $376.7 million. The average EPS estimate is $0.73.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 20 members out of 29 rating the stock outperform, and nine members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Isoftstone Holdings Limited a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Isoftstone Holdings Limited is outperform, with an average price target of $15.10.
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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.