The 10-second takeaway
For the quarter ended June 30 (Q2), AsiaInfo-Linkage met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
AsiaInfo-Linkage logged revenue of $126.3 million. The six analysts polled by S&P Capital IQ anticipated sales of $127.4 million on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $116.2 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 $0.09. The five earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.09 for Q2 were 80% lower than the prior-year quarter's $0.45 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 38.5%, 370 basis points worse than the prior-year quarter. Operating margin was 1.6%, 1,090 basis points worse than the prior-year quarter. Net margin was 4.9%, 2,350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $135.0 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $532.1 million. The average EPS estimate is $0.53.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 293 members out of 329 rating the stock outperform, and 36 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give AsiaInfo-Linkage a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AsiaInfo-Linkage is hold, with an average price target of $15.11.
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 AsiaInfo-Linkage 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 AsiaInfo-Linkage to My Watchlist.
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. The Motley Fool has no positions in the stocks mentioned above. 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.