The 10-second takeaway
For the quarter ended June 3 (Q2), TIBCO Software beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded significantly.
Margins increased across the board.
TIBCO Software reported revenue of $247.4 million. The 16 analysts polled by S&P Capital IQ predicted revenue of $244.6 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $216.4 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 $0.26. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. GAAP EPS of $0.16 for Q2 were 33% higher than the prior-year quarter's $0.12 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 72.2%, 70 basis points better than the prior-year quarter. Operating margin was 15.3%, 190 basis points better than the prior-year quarter. Net margin was 10.7%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $260.1 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is $1.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 488 members out of 520 rating the stock outperform, and 32 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give TIBCO Software a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TIBCO Software is outperform, with an average price target of $35.90.
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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. Motley Fool newsletter services have recommended buying shares of TIBCO Software. 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.