InnerWorkings Beats on EPS But GAAP Results Lag
InnerWorkings (NAS: INWK) reported earnings on May 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), InnerWorkings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank significantly. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins dropped, net margins dropped.
InnerWorkings tallied revenue of $204.3 million. The four analysts polled by S&P Capital IQ hoped for sales of $205.5 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $188.5 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 $0.03. The three earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. Non-GAAP EPS of $0.03 for Q1 were 63% lower than the prior-year quarter's $0.08 per share. GAAP EPS of $0.02 for Q1 were 71% lower than the prior-year quarter's $0.07 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 22.5%, 50 basis points better than the prior-year quarter. Operating margin was 0.9%, 220 basis points worse than the prior-year quarter. Net margin was 0.4%, 160 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $222.5 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $908.0 million. The average EPS estimate is $0.45.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 99 members out of 119 rating the stock outperform, and 20 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give InnerWorkings a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on InnerWorkings is buy, with an average price target of $17.00.
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The article InnerWorkings Beats on EPS But GAAP Results Lag originally appeared on Fool.com.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. The Motley Fool has no position in any of the stocks mentioned. 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.
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