The 10-second takeaway
For the quarter ended Dec. 31 (Q4), iGATE met expectations 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.
Gross margins grew, operating margins dropped, net margins grew.
iGATE chalked up revenue of $271.6 million. The 10 analysts polled by S&P Capital IQ wanted to see a top line of $271.9 million on the same basis. GAAP reported sales were 1.4% higher than the prior-year quarter's $267.7 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 $0.47. The nine earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS of $0.43 for Q4 were 291% higher than the prior-year quarter's $0.11 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 40.6%, 30 basis points better than the prior-year quarter. Operating margin was 21.0%, 70 basis points worse than the prior-year quarter. Net margin was 11.8%, 610 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $274.4 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is $1.69.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 200 members out of 207 rating the stock outperform, and seven members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give iGATE 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 iGATE is outperform, with an average price target of $21.13.
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