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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