Descartes Systems Group
The 10-second takeaway
For the quarter ended July 31 (Q2), Descartes Systems Group missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share was unchanged.
Margins dropped across the board.
Descartes Systems Group booked revenue of $30.5 million. The 11 analysts polled by S&P Capital IQ expected revenue of $31.2 million on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $28.8 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 $0.09. The eight earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.04 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 65.4%, 70 basis points worse than the prior-year quarter. Operating margin was 12.6%, 310 basis points worse than the prior-year quarter. Net margin was 8.1%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $33.1 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $127.6 million. The average EPS estimate is $0.51.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 42 members out of 43 rating the stock outperform, and one members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Descartes Systems Group a green thumbs-up, and one give 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 $10.26.
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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. InsiderMonkey has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.