The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Forrester Research 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 dropped significantly.
Margins shrank across the board.
Forrester Research notched revenue of $75.1 million. The five analysts polled by S&P Capital IQ predicted sales of $74.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.28. The five earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.21 for Q4 were 45% lower than the prior-year quarter's $0.38 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 61.7%, 480 basis points worse than the prior-year quarter. Operating margin was 9.8%, 870 basis points worse than the prior-year quarter. Net margin was 6.3%, 560 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $71.5 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $307.1 million. The average EPS estimate is $1.14.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 71 members out of 78 rating the stock outperform, and seven members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Forrester Research 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 Forrester Research is outperform, with an average price target of $33.00.
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