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Will These Numbers from Virtusa Be Good Enough for You?

Monday - 1/28/2013, 10:07am  ET

Virtusa is expected to report Q3 earnings on Jan. 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Virtusa's revenues will expand 18.5% and EPS will grow 27.3%.

The average estimate for revenue is $85.6 million. On the bottom line, the average EPS estimate is $0.28.

Revenue details
Last quarter, Virtusa reported revenue of $80.5 million. GAAP reported sales were 15% higher than the prior-year quarter's $70.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.23. GAAP EPS of $0.23 for Q2 were 28% higher than the prior-year quarter's $0.18 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 34.3%, 110 basis points worse than the prior-year quarter. Operating margin was 9.2%, 140 basis points better than the prior-year quarter. Net margin was 7.2%, 50 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $331.0 million. The average EPS estimate is $1.07.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 102 members out of 107 rating the stock outperform, and five members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Virtusa a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Virtusa is buy, with an average price target of $20.33.

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This article was originally published as Will These Numbers from Virtusa Be Good Enough for You?on Fool.com

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