The 10-second takeaway
For the quarter ended Dec. 31 (Q4), EPIQ Systems missed estimates on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins shrank, and net margins dropped.
EPIQ Systems reported revenue of $73.6 million. The three analysts polled by S&P Capital IQ foresaw revenue of $77.5 million on the same basis. GAAP reported sales were 9.0% higher than the prior-year quarter's $67.6 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 $0.24. The three earnings estimates compiled by S&P Capital IQ predicted $0.26 per share on the same basis. GAAP EPS of $0.05 for Q4 were 38% lower than the prior-year quarter's $0.08 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 60.6%, 180 basis points better than the prior-year quarter. Operating margin was 7.9%, 600 basis points worse than the prior-year quarter. Net margin was 2.6%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $88.3 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $364.3 million. The average EPS estimate is $1.03.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 161 members out of 180 rating the stock outperform, and 19 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give EPIQ Systems a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EPIQ Systems is outperform, with an average price target of $14.50.
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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.