The 10-second takeaway
For the quarter ended Aug. 31 (Q1), Team beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew.
Margins dropped across the board.
Team reported revenue of $161.5 million. The six analysts polled by S&P Capital IQ predicted revenue of $157.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $141.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.36. The six earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.36 for Q1 were 9.1% higher than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.7%, 80 basis points worse than the prior-year quarter. Operating margin was 7.7%, 30 basis points worse than the prior-year quarter. Net margin was 4.7%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $178.8 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $691.8 million. The average EPS estimate is $1.97.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 228 members out of 238 rating the stock outperform, and 10 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Team a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Team is outperform, with an average price target of $36.83.
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