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.
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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.