The 10-second takeaway
For the quarter ended June 30 (Q2), MicroStrategy missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins increased, and net margins expanded.
MicroStrategy booked revenue of $141.8 million. The nine analysts polled by S&P Capital IQ predicted sales of $153.8 million on the same basis. GAAP reported sales were 2.7% higher than the prior-year quarter's $138.2 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 $0.65. The eight earnings estimates compiled by S&P Capital IQ forecast $0.47 per share. GAAP EPS of $0.65 for Q2 were 150% higher than the prior-year quarter's $0.26 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 74.2%, 80 basis points worse than the prior-year quarter. Operating margin was 6.7%, 420 basis points better than the prior-year quarter. Net margin was 5.1%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $150.6 million. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $610.4 million. The average EPS estimate is $3.17.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 186 members out of 218 rating the stock outperform, and 32 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give MicroStrategy a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MicroStrategy is hold, with an average price target of $148.57.
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