AsiaInfo-Linkage,Inc. Beats Expectations But Takes A Step Back Anyway
AsiaInfo-Linkage (NAS: ASIA) reported earnings Feb. 13. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AsiaInfo-Linkage beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
AsiaInfo-Linkage reported revenue of $119.3 million. The six analysts polled by S&P Capital IQ predicted net sales of $117.1 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $114.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.18. The five earnings estimates compiled by S&P Capital IQ predicted $0.14 per share on the same basis. GAAP EPS of $0.14 for Q3 were 33% lower than the prior-year quarter's $0.21 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 41.4%, 390 basis points worse than the prior-year quarter. Operating margin was 8.4%, 570 basis points worse than the prior-year quarter. Net margin was 8.0%, 560 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $130.9 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $475.0 million. The average EPS estimate is $1.01.
The stock has a two-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 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give AsiaInfo-Linkage a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AsiaInfo-Linkage is outperform, with an average price target of $17.02.
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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.
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