Computer Task Group
The 10-second takeaway
For the quarter ended March 30 (Q1), Computer Task Group met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.
Margins improved across the board.
Computer Task Group booked revenue of $103.4 million. The three analysts polled by S&P Capital IQ hoped for sales of $103.7 million on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $95.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.20. The four earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share. GAAP EPS of $0.20 for Q1 were 18% higher than the prior-year quarter's $0.17 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 21.1%, 50 basis points better than the prior-year quarter. Operating margin was 5.4%, 60 basis points better than the prior-year quarter. Net margin was 3.3%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $106.7 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $432.5 million. The average EPS estimate is $0.88.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 51 members out of 52 rating the stock outperform, and one member rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Computer Task Group a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Computer Task Group is buy, with an average price target of $17.75.
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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.