NetSuite (NYSE: N ) reported earnings on Oct. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), NetSuite beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share expanded.
Gross margins dropped, operating margins expanded, net margins grew.
NetSuite reported revenue of $79.8 million. The 23 analysts polled by S&P Capital IQ expected a top line of $78.0 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $61.0 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 $0.08. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were -$0.11 for Q3 versus -$0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.6%, 140 basis points worse than the prior-year quarter. Operating margin was -9.1%, 150 basis points better than the prior-year quarter. Net margin was -10.0%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $82.0 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $304.0 million. The average EPS estimate is $0.22.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 230 members out of 319 rating the stock outperform, and 89 members rating it underperform. Among 86 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give NetSuite a green thumbs-up, and 32 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NetSuite is hold, with an average price target of $47.76.
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