iGATE Beats Up on Analysts Yet Again

iGATE (Nasdaq: IGTE  ) reported earnings on April 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), iGATE beat slightly on revenues and crushed expectations on earnings per share.

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

Gross margins dropped, operating margins expanded, net margins grew.

Revenue details
iGATE logged revenue of $274.9 million. The eight analysts polled by S&P Capital IQ predicted sales of $272.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.51. The eight earnings estimates compiled by S&P Capital IQ forecast $0.42 per share. Non-GAAP EPS of $0.51 for Q1 were 34% higher than the prior-year quarter's $0.38 per share. GAAP EPS of $0.34 for Q1 were 55% higher than the prior-year quarter's $0.22 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 38.1%, 210 basis points worse than the prior-year quarter. Operating margin was 19.1%, 80 basis points better than the prior-year quarter. Net margin was 12.6%, 350 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $280.3 million. On the bottom line, the average EPS estimate is $0.36.

Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is $1.65.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on iGATE is outperform, with an average price target of $21.57.

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