Infosys Beats on Revenue, Matches Expectations on EPS

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Infosys (NAS: INFY) reported earnings on Jan. 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Infosys beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew, and earnings per share expanded significantly.

Margins expanded across the board.

Revenue details
Infosys reported revenue of $1.8 billion. The 24 analysts polled by S&P Capital IQ predicted net sales of $1.7 billion. Sales were 14% higher than the prior-year quarter's $1.6 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.80. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.80 per share. GAAP EPS of $0.80 for Q3 were 16% higher than the prior-year quarter's $0.69 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.0%, 50 basis points better than the prior-year quarter. Operating margin was 31.0%, 80 basis points better than the prior-year quarter. Net margin was 25.4%, 40 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.8 billion. On the bottom line, the average EPS estimate is $0.84.

Next year's average estimate for revenue is $6.7 billion. The average EPS estimate is $2.99.

Investor Sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,126 members out of 1,162 rating the stock outperform, and 36 members rating it underperform. Among 306 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 295 give Infosys a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Infosys is hold, with an average price target of $60.47.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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