eResearchTechnology Beats on Both Top and Bottom Lines
eResearchTechnology (NAS: ERT) reported earnings on May 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), eResearchTechnology beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share increased significantly.
Gross margin expanded, operating margin shrank, and net margin was steady.
eResearchTechnology recorded revenue of $50.5 million. The five analysts polled by S&P Capital IQ predicted revenue of $46.6 million on the same basis. GAAP-reported sales were 21% higher than the prior-year quarter's $41.7 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 $0.10. The one earnings estimate compiled by S&P Capital IQ averaged $0.08 per share. GAAP EPS of $0.08 for Q1 were 33% higher than the prior-year quarter's $0.06 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 44.6%, 40 basis points better than the prior-year quarter. Operating margin was 12.6%, 20 basis points worse than the prior-year quarter. Net margin was 7.4%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $47.8 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $199.7 million. The average EPS estimate is $0.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 174 members rating the stock outperform and eight members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give eResearchTechnology a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on eResearchTechnology is hold, with an average price target of $8.14.
Over the decades, small-cap stocks like eResearchTechnology have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add eResearchTechnology to My Watchlist.
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.