The 10-second takeaway
For the quarter ended Dec. 29 (Q1), Parametric Technology met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew significantly.
Gross margins increased, operating margins contracted, net margins increased.
Parametric Technology tallied revenue of $321.3 million. The 10 analysts polled by S&P Capital IQ wanted to see sales of $320.4 million on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $318.3 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 $0.36. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS of $0.29 for Q1 were 61% higher than the prior-year quarter's $0.18 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 69.6%, 50 basis points better than the prior-year quarter. Operating margin was 9.2%, 170 basis points worse than the prior-year quarter. Net margin was 11.2%, 420 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $326.0 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $1.36 billion. The average EPS estimate is $1.75.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 73 members out of 90 rating the stock outperform, and 17 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Parametric Technology 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 Parametric Technology is outperform, with an average price target of $26.00.
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