The 10-second takeaway
For the quarter ended June 30 (Q2), Exlservice Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share was unchanged.
Margins contracted across the board.
Exlservice Holdings reported revenue of $116.0 million. The 10 analysts polled by S&P Capital IQ expected a top line of $115.8 million on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $108.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.37. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. Non-GAAP EPS of $0.37 for Q2 were 2.8% higher than the prior-year quarter's $0.36 per share. GAAP EPS of $0.27 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 36.3%, 260 basis points worse than the prior-year quarter. Operating margin was 11.1%, 220 basis points worse than the prior-year quarter. Net margin was 8.0%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $121.6 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $481.2 million. The average EPS estimate is $1.74.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 72 members out of 80 rating the stock outperform, and eight members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Exlservice Holdings a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Exlservice Holdings is outperform, with an average price target of $33.75.
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