The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SciQuest missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share didn't move.
Margins dropped across the board.
SciQuest booked revenue of $14.2 million. The eight analysts polled by S&P Capital IQ expected a top line of $14.6 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $11.0 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 $0.09. The six earnings estimates compiled by S&P Capital IQ averaged $0.08 per share on the same basis. GAAP EPS of $0.05 were the same as 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 73.2%, 330 basis points worse than the prior-year quarter. Operating margin was 13.8%, 260 basis points worse than the prior-year quarter. Net margin was 7.6%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $14.5 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $63.2 million. The average EPS estimate is $0.26.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 14 members out of 16 rating the stock outperform, and two members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give SciQuest a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SciQuest is outperform, with an average price target of $18.71.
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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.