The 10-second takeaway
For the quarter ended March 4 (Q1), TIBCO Software beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, and net margins improved.
TIBCO Software reported revenue of $225.7 million. The 14 analysts polled by S&P Capital IQ hoped for a top line of $222.3 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $185.3 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 $0.20. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.19 per share on the same basis. GAAP EPS of $0.12 for Q1 were 33% higher than the prior-year quarter's $0.09 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 70.7%, 70 basis points worse than the prior-year quarter. Operating margin was 10.8%, 30 basis points better than the prior-year quarter. Net margin was 9.1%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $244.1 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $1.18.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 460 members rating the stock outperform and 32 members rating it underperform. Among 142 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give TIBCO Software 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 TIBCO Software is outperform, with an average price target of $29.54.
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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. Motley Fool newsletter services have recommended buying shares of TIBCO Software. 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.