SPS Commerce, in the Spotlight Soon

SPS Commerce (Nasdaq: SPSC  ) is expected to report Q1 earnings on April 25. 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 SPS Commerce's revenues will grow 39.7% and EPS will increase 22.2%.

The average estimate for revenue is $23.1 million. On the bottom line, the average EPS estimate is $0.11.

Revenue details
Last quarter, SPS Commerce logged revenue of $22.5 million. GAAP reported sales were 42% higher than the prior-year quarter's $15.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.12. GAAP EPS of $0.02 for Q4 were 98% lower than the prior-year quarter's $1.03 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 69.7%, 370 basis points worse than the prior-year quarter. Operating margin was 1.9%, 210 basis points worse than the prior-year quarter. Net margin was 1.6%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $98.3 million. The average EPS estimate is $0.50.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SPS Commerce is buy, with an average price target of $43.14.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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