The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ServiceSource International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
ServiceSource International notched revenue of $67.3 million. The seven analysts polled by S&P Capital IQ predicted revenue of $63.1 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $60.8 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 $0.05. The eight earnings estimates compiled by S&P Capital IQ forecast $0.01 per share. GAAP EPS were -$0.02 for Q4 versus $0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.6%, 140 basis points worse than the prior-year quarter. Operating margin was -0.3%, 610 basis points worse than the prior-year quarter. Net margin was -1.8%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $61.3 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $267.4 million. The average EPS estimate is $0.08.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 21 members out of 34 rating the stock outperform, and 13 members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give ServiceSource International a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ServiceSource International is outperform, with an average price target of $10.14.
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