Isoftstone Holdings Limited Misses Where It Counts
Isoftstone Holdings Limited (NYS: ISS) reported earnings on May 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Isoftstone Holdings Limited beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Isoftstone Holdings Limited tallied revenue of $86.3 million. The four analysts polled by S&P Capital IQ expected to see a top line of $79.6 million on the same basis. GAAP reported sales were 52% higher than the prior-year quarter's $56.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.12. The four earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. GAAP EPS of $0.06 for Q1 were 40% lower than the prior-year quarter's $0.10 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 32.2%, 390 basis points worse than the prior-year quarter. Operating margin was 5.2%, 130 basis points worse than the prior-year quarter. Net margin was 3.8%, 520 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $89.5 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $376.7 million. The average EPS estimate is $0.73.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 20 members out of 29 rating the stock outperform, and nine members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Isoftstone Holdings Limited 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 Isoftstone Holdings Limited is outperform, with an average price target of $15.10.
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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.