The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Team beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins increased, net margins expanded.
Team chalked up revenue of $200.6 million. The seven analysts polled by S&P Capital IQ looked for revenue of $182.4 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $158.3 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 $0.66. The six earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.66 for Q2 were 32% higher than the prior-year quarter's $0.50 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 31.1%, 80 basis points worse than the prior-year quarter. Operating margin was 11.2%, 20 basis points better than the prior-year quarter. Net margin was 6.9%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $155.2 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $712.6 million. The average EPS estimate is $1.96.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 225 members out of 235 rating the stock outperform, and 10 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Team a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Team is outperform, with an average price target of $37.14.
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