The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Aspen Technology beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
Aspen Technology reported revenue of $77.3 million. The seven analysts polled by S&P Capital IQ wanted to see net sales of $67.3 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $66.6 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 averaged $0.05 per share. GAAP EPS of $0.10 for Q2 were 150% higher than the prior-year quarter's $0.04 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 84.0%, 340 basis points better than the prior-year quarter. Operating margin was 19.3%, 870 basis points better than the prior-year quarter. Net margin was 12.9%, 710 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $72.9 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $296.0 million. The average EPS estimate is $0.33.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 68 members out of 98 rating the stock outperform, and 30 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Aspen Technology 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 Aspen Technology is buy, with an average price target of $29.80.
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