The 10-second takeaway
For the quarter ended March 31 (Q1), Forrester Research met expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue improved and GAAP earnings per share grew.
Margins improved across the board.
Forrester Research logged revenue of $70.3 million. The four analysts polled by S&P Capital IQ looked for revenue of $70.2 million on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $65.7 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 $0.22. The three earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. GAAP EPS of $0.14 for Q1 were 7.7% higher than the prior-year quarter's $0.13 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 61.7%, 50 basis points better than the prior-year quarter. Operating margin was 8.5%, 150 basis points better than the prior-year quarter. Net margin was 4.5%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $80.6 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $311.5 million. The average EPS estimate is $1.21.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 65 members out of 72 rating the stock outperform, and seven members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Forrester Research a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forrester Research is outperform, with an average price target of $36.75.
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