The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Actuate missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to zero.
Margins contracted across the board.
Actuate reported revenue of $32.2 million. The six analysts polled by S&P Capital IQ looked for sales of $34.6 million on the same basis. GAAP reported sales were 4.8% lower than the prior-year quarter's $33.8 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 $0.08. The six earnings estimates compiled by S&P Capital IQ forecast $0.11 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.09.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 82.4%, 160 basis points worse than the prior-year quarter. Operating margin was 8.5%, 1,210 basis points worse than the prior-year quarter. Net margin was 0.3%, 1,370 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $37.1 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $142.8 million. The average EPS estimate is $0.47.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 482 members out of 497 rating the stock outperform, and 15 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Actuate a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Actuate is buy, with an average price target of $8.67.
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