SolarWinds (NYSE: SWI ) reported earnings on Feb. 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SolarWinds beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins contracted, net margins grew.
SolarWinds recorded revenue of $73.5 million. The 15 analysts polled by S&P Capital IQ hoped for sales of $70.7 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $55.6 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 16 earnings estimates compiled by S&P Capital IQ anticipated $0.33 per share. GAAP EPS of $0.29 for Q4 were 32% higher than the prior-year quarter's $0.22 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 92.8%, 110 basis points worse than the prior-year quarter. Operating margin was 42.3%, 60 basis points worse than the prior-year quarter. Net margin was 30.3%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $74.7 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $332.4 million. The average EPS estimate is $1.54.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 131 members out of 165 rating the stock outperform, and 34 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give SolarWinds a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SolarWinds is outperform, with an average price target of $56.36.
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