Internap Network Services Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Internap Network Services (NAS: INAP) reported earnings on April 26. Here are the numbers you need to know.

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

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


Margins grew across the board.

Revenue details
Internap Network Services reported revenue of $67.0 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $66.7 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $59.4 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 $0.03. The five earnings estimates compiled by S&P Capital IQ averaged $0.00 per share. GAAP EPS dropped to zero from the prior-year quarter's -$0.03.

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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 43.5%, 100 basis points better than the prior-year quarter. Operating margin was 2.6%, 370 basis points better than the prior-year quarter. Net margin was 0.2%, 270 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $68.1 million. On the bottom line, the average EPS estimate is $0.00.

Next year's average estimate for revenue is $276.3 million. The average EPS estimate is $0.01.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 257 members out of 276 rating the stock outperform, and 19 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Internap Network Services 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 Internap Network Services is outperform, with an average price target of $8.63.

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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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