The 10-second takeaway
For the quarter ended March 31 (Q4), Virtusa met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share grew significantly.
Margins expanded across the board.
Virtusa tallied revenue of $89.9 million. The eight analysts polled by S&P Capital IQ wanted to see net sales of $89.7 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $74.2 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 $0.35. The eight earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.35 for Q4 were 52% higher than the prior-year quarter's $0.23 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 35.9%, 30 basis points better than the prior-year quarter. Operating margin was 10.5%, 100 basis points better than the prior-year quarter. Net margin was 10.1%, 230 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $91.2 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $385.8 million. The average EPS estimate is $1.34.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 104 members out of 110 rating the stock outperform, and six members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Virtusa 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 Virtusa is outperform, with an average price target of $26.17.
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