Tangoe
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Tangoe beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Gross margins increased, operating margins dropped, net margins expanded.
Revenue details
Tangoe logged revenue of $40.1 million. The seven analysts polled by S&P Capital IQ expected sales of $39.4 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $27.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.13. The seven earnings estimates compiled by S&P Capital IQ forecast $0.12 per share. GAAP EPS were $0.01 for Q3 against -$0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 54.4%, 220 basis points better than the prior-year quarter. Operating margin was 2.3%, 200 basis points worse than the prior-year quarter. Net margin was 1.4%, 820 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $42.4 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $152.5 million. The average EPS estimate is $0.47.
Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 15 members out of 33 rating the stock outperform, and 18 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give Tangoe a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tangoe is buy, with an average price target of $27.29.
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 Tangoe 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 Tangoe to My Watchlist.