Descartes Systems Group (Nasdaq: DSGX ) is expected to report Q4 earnings on March 7. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Descartes Systems Group's revenues will grow 13.0% and EPS will grow 87.5%.
The average estimate for revenue is $33.4 million. On the bottom line, the average EPS estimate is $0.15.
Last quarter, Descartes Systems Group booked revenue of $32.7 million. 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.
Last quarter, non-GAAP EPS came in at $0.10. 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 preceding quarter, gross margin was 68.1%, 140 basis points better than the prior-year quarter. Operating margin was 15.1%, 160 basis points worse than the prior-year quarter. Net margin was 9.5%, 10 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $126.5 million. The average EPS estimate is $0.52.
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 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 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.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Descartes Systems Group makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.