InnerWorkings
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), InnerWorkings met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Gross margins were steady, operating margins were steady, net margins shrank.
Revenue details
InnerWorkings reported revenue of $199.8 million. The four analysts polled by S&P Capital IQ foresaw sales of $201.6 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $157.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.10. The four earnings estimates compiled by S&P Capital IQ forecast $0.11 per share. GAAP EPS of $0.10 for Q3 were 11% higher than the prior-year quarter's $0.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 23.5%, about the same as the prior-year quarter. Operating margin was 3.8%, about the same as the prior-year quarter. Net margin was 2.5%, 10 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $218.6 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $810.2 million. The average EPS estimate is $0.43.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 99 members out of 117 rating the stock outperform, and 18 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give InnerWorkings 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 InnerWorkings is buy, with an average price target of $15.33.
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