Descartes Systems Group
The 10-second takeaway
For the quarter ended Oct. 31 (Q3), Descartes Systems Group beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Gross margins increased, operating margins dropped, net margins dropped.
Descartes Systems Group chalked up revenue of $32.7 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $32.3 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $28.5 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 $0.10. The seven earnings estimates compiled by S&P Capital IQ forecast $0.14 per share. GAAP EPS of $0.05 for Q3 were 25% higher than the prior-year quarter's $0.04 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 68.1%, 140 basis points better than the prior-year quarter. Operating margin was 14.4%, 230 basis points worse than the prior-year quarter. Net margin was 9.5%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $33.5 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $126.1 million. The average EPS estimate is $0.53.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 42 members out of 43 rating the stock outperform, and one members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Descartes Systems Group 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 Descartes Systems Group is outperform, with an average price target of $10.16.
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