The 10-second takeaway
For the quarter ended June 30 (Q2), Forrester Research missed slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins increased, and net margins expanded.
Forrester Research reported revenue of $79.1 million. The four analysts polled by S&P Capital IQ expected revenue of $80.5 million on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $73.5 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 $0.36. The four earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS of $0.34 for Q2 were 42% higher than the prior-year quarter's $0.24 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 62.3%, 50 basis points worse than the prior-year quarter. Operating margin was 14.6%, 110 basis points better than the prior-year quarter. Net margin was 9.8%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $77.0 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $312.0 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 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 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 $38.50.
Is Forrester Research playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
- Add Forrester Research to My Watchlist.
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.
More from The Motley Fool
Facebook vs. Google: Where Do You Spend More Time?
New research shows smartphone users are splitting most of their time between Facebook and Google apps.
Forrester Research Beats Up on Analysts Yet Again
Just the facts, Fool.
It's Showtime for Forrester Research