iSoftStone Holdings Meets on the Top Line, Misses Where it Counts

iSoftStone Holdings (NYS: ISS) reported earnings on March 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), iSoftStone Holdings met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share didn't move. GAAP earnings per share increased.


Gross margins shrank, operating margins grew, net margins increased.

Revenue details
iSoftStone Holdings logged revenue of $104.2 million. The three analysts polled by S&P Capital IQ predicted revenue of $103.5 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $85.8 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 $0.19. The three earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. Non-GAAP EPS of $0.19 were the same as the prior-year quarter. GAAP EPS of $0.10 for Q4 were much higher than the prior-year quarter's $0.00 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 35.4%, 10 basis points worse than the prior-year quarter. Operating margin was 10.6%, 310 basis points better than the prior-year quarter. Net margin was 7.4%, 490 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $102.1 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $461.9 million. The average EPS estimate is $0.68.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 17 members out of 35 rating the stock outperform, and 18 members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give iSoftStone Holdings a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on iSoftStone Holdings is outperform, with an average price target of $11.50.

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The article iSoftStone Holdings Meets on the Top Line, Misses Where it Counts 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.

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