Agilysys Earnings Preview

Investors hope Agilysys (Nasdaq: AGYS  ) will top analyst estimates once again after beating predictions by $0.02 in the previous quarter. The company will unveil its latest earnings on Monday. Agilysis is a provider of innovative IT solutions to corporate and public-sector customers, with special expertise in select markets, including retail and hospitality.

What analysts say:

• Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Agilysys better than competitor SYNNEX overall. Five out of six analysts rate SYNNEX a buy compared to one of one for Agilysys. That rating hasn't budged in three months as analysts have remained steadfast in their opinion of the stock.
• Wall Street earnings expectations: The average analyst estimate is a loss of $0.09 per share.

What our community says:
The majority of CAPS All-Stars see Agilysys as a good bet, with 74.1% assigning it an outperform rating. The majority of the Fools are in agreement with the All-Stars as 79.6% give it an outperform rating. Fools are gung-ho about Agilysys, though the message boards have been quiet lately with only 43 posts in the past 30 days. Agilysys' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
The company's revenue has now risen for two straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter	Q1	Q4	Q3	Q2
Gross Margin	25.3%	25.3%	21.5%	22.2%
Operating Margin	(3.6%)	(32.7%)	0.9%	(1.5%)
Net Margin	(3.2%)	(31.3%)	0.9%	(1.2%)

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