Wipro Whiffs on Earnings
Wipro (NYS: WIT) reported earnings on Jan. 20. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Wipro beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share dropped.
Margins dropped across the board.
Wipro reported revenue of $1.9 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $1.8 billion. Sales were 6.6% higher than the prior-year quarter's $1.8 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.11. The seven earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. GAAP EPS of $0.11 for Q3 were 7.5% lower than the prior-year quarter's $0.12 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 29.5%, 220 basis points worse than the prior-year quarter. Operating margin was 16.3%, 200 basis points worse than the prior-year quarter. Net margin was 14.7%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2 billion. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $7.3 billion. The average EPS estimate is $0.49.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 394 members out of 427 rating the stock outperform, and 33 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Wipro a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wipro is hold, with an average price target of $10.20.
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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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