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.
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 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.
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.
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.
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.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere