The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Parametric Technology missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins grew, net margins shrank.
Parametric Technology notched revenue of $325.3 million. The 11 analysts polled by S&P Capital IQ expected a top line of $331.2 million on the same basis. GAAP reported sales were 4.2% lower than the prior-year quarter's $339.4 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 $0.50. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS were -$0.71 for Q4 compared to $0.32 per share for 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 73.0%, 200 basis points better than the prior-year quarter. Operating margin was 17.7%, 220 basis points better than the prior-year quarter. Net margin was -25.8%, 3,690 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $335.9 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $1.40 billion. The average EPS estimate is $1.77.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 75 members out of 92 rating the stock outperform, and 17 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Parametric Technology 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 Parametric Technology is outperform, with an average price target of $25.45.
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