The 10-second takeaway
For the quarter ended March 31 (Q4), Compuware met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Gross margins increased, operating margins shrank, net margins dropped.
Compuware reported revenue of $239.9 million. The four analysts polled by S&P Capital IQ hoped for a top line of $239.7 million on the same basis. GAAP reported sales were 9.8% lower than the prior-year quarter's $266.0 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 $0.05. The three earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. Non-GAAP EPS of $0.05 for Q4 were 58% lower than the prior-year quarter's $0.12 per share. GAAP EPS were -$0.30 for Q4 against $0.12 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 80.2%, much better than the prior-year quarter. Operating margin was 7.2%, 640 basis points worse than the prior-year quarter. Net margin was -26.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $230.7 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $0.44.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 148 members out of 173 rating the stock outperform, and 25 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Compuware a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Compuware is outperform, with an average price target of $12.60.
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