Descartes Systems Group
The 10-second takeaway
For the quarter ended April 30 (Q1), Descartes Systems Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Gross margins dropped, operating margins shrank, and net margins increased.
Descartes Systems Group tallied revenue of $29.9 million. The 11 analysts polled by S&P Capital IQ wanted to see a top line of $30.1 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $27.1 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 $0.07. The nine earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.04 for Q1 were 33% 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 64.6%, 250 basis points worse than the prior-year quarter. Operating margin was 14.8%, 250 basis points worse than the prior-year quarter. Net margin was 8.7%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $31.2 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $125.9 million. The average EPS estimate is $0.54.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 43 members out of 44 rating the stock outperform, and one member rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Descartes Systems Group a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Descartes Systems Group is outperform, with an average price target of $10.05.
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