The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Actuate missed slightly on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share expanded significantly.
Margins grew across the board.
Actuate logged revenue of $35.3 million. The five analysts polled by S&P Capital IQ predicted revenue of $36.0 million. Sales were 9.2% higher than the prior-year quarter's $32.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.15. The five earnings estimates compiled by S&P Capital IQ predicted $0.15 per share on the same basis. GAAP EPS of $0.10 for Q4 were 68% higher than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 84.3%, 200 basis points better than the prior-year quarter. Operating margin was 22.0%, 560 basis points better than the prior-year quarter. Net margin was 14.2%, 580 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $34.7 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $146.7 million. The average EPS estimate is $0.51.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 491 members out of 506 rating the stock outperform, and 15 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 127 give Actuate a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Actuate is outperform, with an average price target of $8.10.
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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. 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.