Internap Network Services
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Internap Network Services beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped to zero.
Gross margins shrank, operating margins increased, net margins contracted.
Internap Network Services booked revenue of $69.7 million. The six analysts polled by S&P Capital IQ foresaw sales of $69.0 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $62.8 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 $0.04. The five earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. Non-GAAP EPS of $0.04 for Q4 were 300% higher than the prior-year quarter's $0.01 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.08.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.4%, 140 basis points worse than the prior-year quarter. Operating margin was 3.8%, 340 basis points better than the prior-year quarter. Net margin was 0.0%, 670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $69.8 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $285.2 million. The average EPS estimate is $0.03.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 255 members out of 276 rating the stock outperform, and 21 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Internap Network Services a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Internap Network Services is outperform, with an average price target of $8.38.
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