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

Seth Jayson, The Motley Fool
Updated

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 thisarticle 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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