The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Advent Software beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Advent Software notched revenue of $84.6 million. The four analysts polled by S&P Capital IQ hoped for revenue of $82.0 million. Sales were 14% higher than the prior-year quarter's $72.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.22. The five earnings estimates compiled by S&P Capital IQ anticipated $0.19 per share on the same basis. GAAP EPS of $0.12 for Q3 were 29% lower than the prior-year quarter's $0.17 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 69.1%, 340 basis points worse than the prior-year quarter. Operating margin was 12.3%, 350 basis points worse than the prior-year quarter. Net margin was 7.6%, 460 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $85.9 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $325.8 million. The average EPS estimate is $0.78.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 57 members out of 92 rating the stock outperform, and 35 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Advent Software a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advent Software is hold, with an average price target of $29.00.
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