The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Interxion Holding met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.
Margins dropped across the board.
Interxion Holding booked revenue of $96.1 million. The 11 analysts polled by S&P Capital IQ looked for sales of $96.6 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $83.7 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 $0.12. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. Non-GAAP EPS of $0.12 for Q4 were 40% lower than the prior-year quarter's $0.20 per share. GAAP EPS of $0.11 for Q4 were 48% lower than the prior-year quarter's $0.21 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 60.3%, 10 basis points worse than the prior-year quarter. Operating margin was 20.2%, 770 basis points worse than the prior-year quarter. Net margin was 7.8%, 870 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $100.6 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $421.7 million. The average EPS estimate is $0.85.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 19 members out of 21 rating the stock outperform, and two members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Interxion Holding a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Interxion Holding is buy, with an average price target of $27.29.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.