The 10-second takeaway
For the quarter ended June 30 (Q4), Aspen Technology beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted to a loss.
Gross margins expanded, operating margins improved, net margins dropped.
Aspen Technology booked revenue of $64.0 million. The seven analysts polled by S&P Capital IQ expected to see sales of $62.4 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $52.6 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 -$0.04. The eight earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. GAAP EPS were -$0.06 for Q4 against $0.44 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 79.5%, 830 basis points better than the prior-year quarter. Operating margin was -5.9%, 2,910 basis points better than the prior-year quarter. Net margin was -8.4%, 8,760 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $64.3 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $289.4 million. The average EPS estimate is $0.20.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 65 members out of 93 rating the stock outperform, and 28 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Aspen Technology a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aspen Technology is buy, with an average price target of $25.00.
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 Aspen Technology 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.
- Add Aspen Technology to My Watchlist.
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 positions in the stocks mentioned above. 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.
More from The Motley Fool
Is Aspen Technology Working Hard Enough for You?
Keep your eye on margins.
Aspen Technology Beats on Both Top and Bottom Lines
Just the facts, Fool.
Why Aspen Technology Jumped
Is this meaningful or just another movement?