The 10-second takeaway
For the quarter ended June 30 (Q2), VanceInfo Technologies beat expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
VanceInfo Technologies logged revenue of $94.7 million. The seven analysts polled by S&P Capital IQ wanted to see sales of $91.3 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $68.2 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 $0.19. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share. GAAP EPS of $0.11 for Q2 were 31% lower than the prior-year quarter's $0.16 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 32.6%, 380 basis points worse than the prior-year quarter. Operating margin was 5.7%, 480 basis points worse than the prior-year quarter. Net margin was 4.9%, 560 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $94.0 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $371.0 million. The average EPS estimate is $0.79.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 235 members out of 267 rating the stock outperform, and 32 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give VanceInfo Technologies a green thumbs-up, and eight 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 $14.65.
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