The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Deltek missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share improved.
Margins improved across the board.
Deltek recorded revenue of $87.4 million. The five analysts polled by S&P Capital IQ expected to see revenue of $88.8 million on the same basis. GAAP reported sales were 1.5% higher than the prior-year quarter's $86.1 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 $0.15. The four earnings estimates compiled by S&P Capital IQ averaged $0.14 per share on the same basis. GAAP EPS were $0.05 for Q4 versus -$0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 66.7%, 670 basis points better than the prior-year quarter. Operating margin was 11.9%, 1,250 basis points better than the prior-year quarter. Net margin was 3.4%, 1,260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $84.7 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $372.3 million. The average EPS estimate is $0.56.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 25 members out of 49 rating the stock outperform, and 24 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Deltek a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Deltek is hold, with an average price target of $8.70.
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