The 10-second takeaway
For the quarter ended March 31 (Q1), eResearchTechnology beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share increased significantly.
Gross margin expanded, operating margin shrank, and net margin was steady.
eResearchTechnology recorded revenue of $50.5 million. The five analysts polled by S&P Capital IQ predicted revenue of $46.6 million on the same basis. GAAP-reported sales were 21% higher than the prior-year quarter's $41.7 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 $0.10. The one earnings estimate compiled by S&P Capital IQ averaged $0.08 per share. GAAP EPS of $0.08 for Q1 were 33% higher than the prior-year quarter's $0.06 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 44.6%, 40 basis points better than the prior-year quarter. Operating margin was 12.6%, 20 basis points worse than the prior-year quarter. Net margin was 7.4%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $47.8 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $199.7 million. The average EPS estimate is $0.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 174 members rating the stock outperform and eight members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give eResearchTechnology 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 eResearchTechnology is hold, with an average price target of $8.14.
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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.