iGATE Beats Up on Analysts Yet Again

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iGATE (NAS: IGTE) reported earnings today. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), iGATE met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and earnings per share contracted significantly.

Margins shrank across the board.

Revenue details
iGATE logged revenue of $268 million. The nine analysts polled by S&P Capital IQ predicted sales of $269 million. Sales were much higher than the prior-year quarter's $81 million.

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

EPS details
Non-GAAP EPS came in at $0.27. The nine earnings estimates compiled by S&P Capital IQ averaged $0.26 per share on the same basis. GAAP EPS of $0.11 for Q4 were 56% lower than the prior-year quarter's $0.25 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 40.3%, 240 basis points worse than the prior-year quarter. Operating margin was 19.2%, 430 basis points worse than the prior-year quarter. Net margin was 5.7%, 1,250 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $273 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $1.2 billion. The average EPS estimate is $1.35.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 207 members out of 213 rating the stock outperform, and seven members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give iGATE a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on iGATE is outperform, with an average price target of $19.38.

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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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