The 10-second takeaway
For the quarter ended Sep. 30 (Q1), Aspen Technology beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Margins grew across the board.
Aspen Technology tallied revenue of $71.5 million. The seven analysts polled by S&P Capital IQ expected to see sales of $65.2 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $51.2 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 $0.08. The seven earnings estimates compiled by S&P Capital IQ averaged $0.02 per share. GAAP EPS were $0.05 for Q1 against -$0.12 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 82.7%, 970 basis points better than the prior-year quarter. Operating margin was 12.6%, 4,320 basis points better than the prior-year quarter. Net margin was 6.2%, 2,910 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $70.2 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $288.1 million. The average EPS estimate is $0.19.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 68 members out of 96 rating the stock outperform, and 28 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Aspen Technology a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aspen Technology is buy, with an average price target of $28.20.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Aspen Technology makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Aspen Technology to My Watchlist.