The 10-second takeaway
For the quarter ended Dec. 31 (Q4), iSoftStone Holdings met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share didn't move. GAAP earnings per share increased.
Gross margins shrank, operating margins grew, net margins increased.
iSoftStone Holdings logged revenue of $104.2 million. The three analysts polled by S&P Capital IQ predicted revenue of $103.5 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $85.8 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 $0.19. The three earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. Non-GAAP EPS of $0.19 were the same as the prior-year quarter. GAAP EPS of $0.10 for Q4 were much higher than the prior-year quarter's $0.00 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 35.4%, 10 basis points worse than the prior-year quarter. Operating margin was 10.6%, 310 basis points better than the prior-year quarter. Net margin was 7.4%, 490 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $102.1 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $461.9 million. The average EPS estimate is $0.68.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 17 members out of 35 rating the stock outperform, and 18 members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give iSoftStone Holdings a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on iSoftStone Holdings is outperform, with an average price target of $11.50.
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