The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Compuware beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share expanded.
Margins grew across the board.
Compuware notched revenue of $257.9 million. The four analysts polled by S&P Capital IQ anticipated revenue of $254.5 million on the same basis. GAAP reported sales were 1.9% higher than the prior-year quarter's $253.1 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 $0.12. The five earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. GAAP EPS of $0.12 for Q3 were 20% higher than the prior-year quarter's $0.10 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 68.2%, 150 basis points better than the prior-year quarter. Operating margin was 15.4%, 250 basis points better than the prior-year quarter. Net margin was 9.8%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $272.8 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $977.5 million. The average EPS estimate is $0.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 145 members out of 169 rating the stock outperform, and 24 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Compuware a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Compuware is outperform, with an average price target of $11.00.
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