The 10-second takeaway
For the quarter ended Sep. 30 (Q3), SciQuest missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share was unchanged.
Margins dropped across the board.
SciQuest reported revenue of $17.2 million. The eight analysts polled by S&P Capital IQ expected to see a top line of $17.6 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $13.8 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 $0.06. The seven earnings estimates compiled by S&P Capital IQ forecast $0.06 per share. GAAP EPS of $0.03 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 68.9%, 530 basis points worse than the prior-year quarter. Operating margin was -0.8%, 1,170 basis points worse than the prior-year quarter. Net margin was 4.2%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $20.2 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $67.4 million. The average EPS estimate is $0.23.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 17 members out of 21 rating the stock outperform, and four members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give SciQuest 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 SciQuest is outperform, with an average price target of $19.86.
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