The 10-second takeaway
For the quarter ended Sep. 30 (Q3), PRGX Global missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew significantly.
Margins expanded across the board.
PRGX Global reported revenue of $52.1 million. The four analysts polled by S&P Capital IQ predicted revenue of $54.4 million on the same basis. GAAP reported sales were 0.6% higher than the prior-year quarter's $51.8 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 two earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. GAAP EPS of $0.10 for Q3 were 400% higher than the prior-year quarter's $0.02 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 37.7%, 390 basis points better than the prior-year quarter. Operating margin was 6.2%, 110 basis points better than the prior-year quarter. Net margin was 4.9%, 410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $56.1 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $213.8 million. The average EPS estimate is $0.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 143 members out of 153 rating the stock outperform, and 10 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give PRGX Global a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PRGX Global is buy, with an average price target of $10.81.
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