The 10-second takeaway
For the quarter ended March 31 (Q1), InnerWorkings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank significantly. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins dropped, net margins dropped.
InnerWorkings tallied revenue of $204.3 million. The four analysts polled by S&P Capital IQ hoped for sales of $205.5 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $188.5 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 $0.03. The three earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. Non-GAAP EPS of $0.03 for Q1 were 63% lower than the prior-year quarter's $0.08 per share. GAAP EPS of $0.02 for Q1 were 71% lower than the prior-year quarter's $0.07 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 22.5%, 50 basis points better than the prior-year quarter. Operating margin was 0.9%, 220 basis points worse than the prior-year quarter. Net margin was 0.4%, 160 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $222.5 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $908.0 million. The average EPS estimate is $0.45.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 99 members out of 119 rating the stock outperform, and 20 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give InnerWorkings a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on InnerWorkings is buy, with an average price target of $17.00.
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