Ultimate Software Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Ultimate Software Group beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Gross margin dropped, operating margin grew, and net margin grew.
Ultimate Software Group reported revenue of $78.3 million. The 14 analysts polled by S&P Capital IQ looked for revenue of $76.0 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $64.5 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 $0.13. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. GAAP EPS of $0.04 for Q1 were 300% higher than the prior-year quarter's $0.01 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 54.4%, 100 basis points worse than the prior-year quarter. Operating margin was 2.7%, 110 basis points better than the prior-year quarter. Net margin was 1.3%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $78.9 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $331.4 million. The average EPS estimate is $1.01.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 82 members out of 117 rating the stock outperform, and 35 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Ultimate Software Group a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ultimate Software Group is hold, with an average price target of $70.11.
Over the decades, small-cap stocks like Ultimate Software Group have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Ultimate Software Group to My Watchlist.