Syntel (NAS: SYNT) reported earnings on Feb. 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Syntel beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Margins improved across the board.
Syntel reported revenue of $172.4 million. The 10 analysts polled by S&P Capital IQ expected a top line of $169.0 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $144.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.01. The five earnings estimates compiled by S&P Capital IQ anticipated $0.82 per share on the same basis. GAAP EPS of $1.05 for Q4 were 48% higher than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.1%, 370 basis points better than the prior-year quarter. Operating margin was 30.7%, 980 basis points better than the prior-year quarter. Net margin was 25.5%, 500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $171.5 million. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $734.3 million. The average EPS estimate is $3.31.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 174 members out of 185 rating the stock outperform, and 12 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Syntel 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 Syntel is outperform, with an average price target of $57.11.
Is Syntel playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
Add Syntel to My Watchlist.
At the time thisarticle 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.