The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MicroStrategy beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share shrank.
Gross margins dropped, operating margins grew, net margins shrank.
MicroStrategy reported revenue of $164.5 million. The nine analysts polled by S&P Capital IQ expected revenue of $160.1 million on the same basis. GAAP reported sales were 2.6% higher than the prior-year quarter's $160.3 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 $0.73. The eight earnings estimates compiled by S&P Capital IQ averaged $0.99 per share. GAAP EPS of $0.73 for Q4 were 9.9% lower than the prior-year quarter's $0.81 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 75.9%, 60 basis points worse than the prior-year quarter. Operating margin was 8.2%, 260 basis points better than the prior-year quarter. Net margin was 5.0%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $150.4 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $645.9 million. The average EPS estimate is $3.29.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 187 members out of 220 rating the stock outperform, and 33 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give MicroStrategy a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MicroStrategy is hold, with an average price target of $110.71.
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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