Investors hope Tibco Software (Nasdaq: TIBX) will top analyst estimates once again after beating predictions by one cent in the previous quarter. The company will unveil its latest earnings on Thursday, September 22. TIBCO Software is a provider of infrastructure software. It provides a range of standards-based infrastructure software solutions that help organizations achieve the benefits of real-time business.

What analysts say:

  • Buy, sell, or hold?: Half of analysts think investors should stand pat on Tibco Software while the remaining half rate the stock as a buy. Analysts like Tibco Software better than competitor Pegasystems overall. Three out of seven analysts rate Pegasystems a buy compared to four of eight for Tibco Software. Analysts haven't adjusted their rating of Tibco Software for the past three months.
  • Revenue Forecasts: On average, analysts predict $219.9 million in revenue this quarter. That would represent a rise of 19.2% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of 16 cents per share. Estimates range from 16 cents to 17 cents.

What our community says:
CAPS All Stars are solidly behind the stock with 95% giving it an "outperform" rating. The community at large concurs with the All Stars with 92.9% awarding it a rating of "outperform." Fools have embraced Tibco Software and haven't been shy with their opinions lately, logging 108 posts in the past 30 days. Even with a robust four out of five stars, Tibco Software's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Tibco Software's profit has risen year over year by an average of 38% over the past five 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

Q2

Q1

Q4

Q3

Gross Margin

71.5%

71.4%

76%

72.9%

Operating Margin

13.3%

10.2%

23.5%

14.4%

Net Margin

9.7%

8.6%

15.5%

9.4%

For all our Tibco Software-specific analysis, including earnings and beyond, add Tibco Software to My Watchlist.

Motley Fool newsletter services have recommended buying shares of Tibco Software. 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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.