Exlservice Holdings Beats on Both Top and Bottom Lines

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Exlservice Holdings (NAS: EXLS) filed its 10-K on March 6. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased.

Gross margins contracted, operating margins expanded, net margins contracted.

Revenue details
Exlservice Holdings reported revenue of $102.6 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $99.5 million on the same basis. GAAP reported sales were 46% higher than the prior-year quarter's $70.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.37. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.32 per share on the same basis. GAAP EPS of $0.29 for Q4 were 3.6% higher than the prior-year quarter's $0.28 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.5%, 90 basis points worse than the prior-year quarter. Operating margin was 12.6%, 150 basis points better than the prior-year quarter. Net margin was 9.3%, 250 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $103.1 million. On the bottom line, the average EPS estimate is $0.36.

Next year's average estimate for revenue is $450.4 million. The average EPS estimate is $1.52.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 73 members out of 81 rating the stock outperform, and eight members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Exlservice Holdings a green thumbs-up, and three 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 $30.14.

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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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