Watch Monotype Imaging Holdings' (Nasdaq: TYPE) earnings report to see if it can beat analyst expectations for the third consecutive quarter. The company will unveil its latest earnings on Friday, July 29. Monotype Imaging Holdings Inc. is a global provider of text imaging solutions. Its technologies and fonts enable the display and printing of high quality digital text.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Monotype Imaging Holdings better than competitor Mentor Graphics overall. Three out of five analysts rate Mentor Graphics a buy compared to seven of seven for Monotype Imaging Holdings. Analysts still rate the stock a Moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $30 million in revenue this quarter. That would represent a rise of 22.8% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.18 per share. Estimates range from $0.17 to $0.19.

What our community says:
CAPS All-Stars are solidly behind the stock with 93.3% assigning it an "outperform" rating. The community at large agrees with the All-Stars with 82.1% giving it a rating of "outperform." Fools are gung-ho about Monotype Imaging Holdings, though the message boards have been quiet lately with only six posts in the past 30 days. Monotype Imaging Holdings' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Monotype Imaging Holdings' profit has risen year over year by an average of 53.3%. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 

Quarter Q1 Q4 Q3 Q2
Gross Margin 90.6% 90.5% 90.5% 88.6%
Operating Margin 32% 34.7% 34.2% 27.1%
Net Margin 18.3% 20.9% 20.9% 12.5%

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