Open Text (Nasdaq: OTEX ) is expected to report Q4 earnings on July 31. 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 Open Text's revenues will grow 18.1% and EPS will expand 22.2%.
The average estimate for revenue is $361.1 million. On the bottom line, the average EPS estimate is $1.43.
Last quarter, Open Text logged revenue of $337.7 million. GAAP reported sales were 16% higher than the prior-year quarter's $292.3 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 $1.26. GAAP EPS of $0.44 for Q3 were 25% lower than the prior-year quarter's $0.59 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 71.1%, 20 basis points better than the prior-year quarter. Operating margin was 13.7%, 220 basis points better than the prior-year quarter. Net margin was 7.6%, 430 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $1.38 billion. The average EPS estimate is $5.57.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 192 members out of 214 rating the stock outperform, and 22 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Open Text a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Open Text is outperform, with an average price target of $66.27.
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