Syntel Beats on Both Top and Bottom Lines

Syntel (NAS: SYNT) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Syntel beat slightly on revenues and beat expectations on earnings per share.

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


Gross margins increased, operating margins contracted, net margins increased.

Revenue details
Syntel recorded revenue of $187.8 million. The 10 analysts polled by S&P Capital IQ expected revenue of $184.5 million on the same basis. GAAP reported sales were 8.9% higher than the prior-year quarter's $172.4 million.

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 $1.19. The six earnings estimates compiled by S&P Capital IQ anticipated $1.03 per share. GAAP EPS of $1.19 for Q4 were 13% higher than the prior-year quarter's $1.05 per share.

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 45.2%, 310 basis points better than the prior-year quarter. Operating margin was 30.2%, 730 basis points worse than the prior-year quarter. Net margin was 26.6%, 110 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $190.6 million. On the bottom line, the average EPS estimate is $1.00.

Next year's average estimate for revenue is $805.9 million. The average EPS estimate is $4.24.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 201 members out of 215 rating the stock outperform, and 14 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Syntel 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 Syntel is outperform, with an average price target of $63.88.

Is Syntel playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.

The article Syntel Beats on Both Top and Bottom Lines 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 of Motley 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum