The 10-second takeaway
For the quarter ended March 31 (Q1), Actuate beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved significantly.
Margins increased across the board.
Actuate reported revenue of $34.8 million. The five analysts polled by S&P Capital IQ anticipated a top line of $34.1 million on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $32.1 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 $0.11. The five earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS of $0.07 for Q1 were 133% higher than the prior-year quarter's $0.03 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 83.6%, 200 basis points better than the prior-year quarter. Operating margin was 18.1%, 880 basis points better than the prior-year quarter. Net margin was 11.1%, 590 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $36.3 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $143.9 million. The average EPS estimate is $0.51.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 485 members rating the stock outperform and 15 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Actuate a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Actuate is outperform, with an average price target of $8.20.
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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.