The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Forrester Research missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Margins grew across the board.
Forrester Research notched revenue of $74.7 million. The four analysts polled by S&P Capital IQ foresaw a top line of $76.2 million. GAAP sales were 11% higher than the prior-year quarter's $67.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.40. The four earnings estimates compiled by S&P Capital IQ averaged $0.36 per share on the same basis. GAAP EPS of $0.38 for Q4 were 111% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 66.5%, 390 basis points better than the prior-year quarter. Operating margin was 18.5%, 800 basis points better than the prior-year quarter. Net margin was 11.9%, 570 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $74.4 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $319.1 million. The average EPS estimate is $1.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 65 members out of 73 rating the stock outperform, and eight members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Forrester Research a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forrester Research is outperform, with an average price target of $41.67.
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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.