Descartes Systems Group
The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Descartes Systems Group beat slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins dropped, net margins contracted.
Descartes Systems Group chalked up revenue of $29.6 million. The 12 analysts polled by S&P Capital IQ hoped for sales of $29.2 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $26.9 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 $0.08. The five earnings estimates compiled by S&P Capital IQ anticipated $0.13 per share on the same basis. GAAP EPS of $0.07 for Q4 were 42% lower than the prior-year quarter's $0.12 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 65.8%, 60 basis points better than the prior-year quarter. Operating margin was 10.7%, 270 basis points worse than the prior-year quarter. Net margin was 15.3%, 1,340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $30.0 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $129.2 million. The average EPS estimate is $0.57.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 43 members out of 44 rating the stock outperform, and one members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Descartes Systems Group a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Descartes Systems Group is outperform, with an average price target of $9.30.
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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.