The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Blackbaud missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Blackbaud reported revenue of $122.5 million. The four analysts polled by S&P Capital IQ hoped for sales of $125.7 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $95.5 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 $0.26. The three earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. GAAP EPS of $0.06 for Q3 were 73% lower than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.0%, 350 basis points worse than the prior-year quarter. Operating margin was 5.1%, 1,130 basis points worse than the prior-year quarter. Net margin was 2.3%, 790 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $129.1 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $462.3 million. The average EPS estimate is $0.93.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 93 members out of 109 rating the stock outperform, and 16 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Blackbaud 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 Blackbaud is outperform, with an average price target of $33.00.
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