The 10-second takeaway
For the quarter ended Nov. 30 (Q3), DemandTec met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share dropped.
Margins contracted across the board.
DemandTec recorded revenue of $22 million. The seven analysts polled by S&P Capital IQ anticipated sales of $22 million. Sales were 3% higher than the prior-year quarter's $20 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.02. The eight earnings estimates compiled by S&P Capital IQ anticipated -$0.02 per share on the same basis. GAAP EPS were -$0.15 for Q2 against -$0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 64.1%, 140 basis points worse than the prior-year quarter. Operating margin was -11.2%, 160 basis points worse than the prior-year quarter. Net margin was -22.4%, 1,280 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $23 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $91 million. The average EPS estimate is -$0.02.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 46 members out of 60 rating the stock outperform, and 14 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give DemandTec a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DemandTec is hold, with an average price target of $8.86.
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