The 10-second takeaway
For the quarter ended June 30 (Q1), Wipro missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share shrank.
Margins grew across the board.
Wipro booked revenue of $1.64 billion. The 23 analysts polled by S&P Capital IQ predicted revenue of $1.68 billion on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $1.88 billion.
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 $0.11. The seven earnings estimates compiled by S&P Capital IQ averaged $0.11 per share. GAAP EPS of $0.11 for Q1 were 8.3% lower than the prior-year quarter's $0.12 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 30.9%, 30 basis points better than the prior-year quarter. Operating margin was 18.1%, 180 basis points better than the prior-year quarter. Net margin was 16.7%, 160 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.72 billion. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $6.93 billion. The average EPS estimate is $0.46.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 382 members out of 416 rating the stock outperform, and 34 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give Wipro 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 Wipro is hold, with an average price target of $8.42.
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