AsiaInfo-Linkage Hits Estimates, but GAAP Results Lag Last Year's

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AsiaInfo-Linkage (NAS: ASIA) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), AsiaInfo-Linkage met expectations on revenues and met expectations on earnings per share.

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


Margins dropped across the board.

Revenue details
AsiaInfo-Linkage booked revenue of $123.7 million. The four analysts polled by S&P Capital IQ predicted a top line of $122.6 million on the same basis. GAAP reported sales were 8.1% higher than the prior-year quarter's $114.5 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
EPS came in at $0.09. The four earnings estimates compiled by S&P Capital IQ averaged $0.09 per share. GAAP EPS of $0.09 for Q1 were 63% lower than the prior-year quarter's $0.24 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 39.2%, 640 basis points worse than the prior-year quarter. Operating margin was 2.0%, 1,110 basis points worse than the prior-year quarter. Net margin was 5.1%, 1,050 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $127.0 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $535.5 million. The average EPS estimate is $0.57.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 293 members out of 332 rating the stock outperform, and 39 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give AsiaInfo-Linkage a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AsiaInfo-Linkage is hold, with an average price target of $15.15.

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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. He is the 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 don't 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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