The 10-second takeaway
For the quarter ended Dec. 31 (Q4), EPIQ Systems beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded. GAAP earnings per share grew significantly.
Gross margins expanded, operating margins contracted, net margins grew.
EPIQ Systems chalked up revenue of $95.7 million. The three analysts polled by S&P Capital IQ anticipated sales of $86.4 million on the same basis. GAAP reported sales were 40% higher than the prior-year quarter's $68.6 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 $0.26. The three earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. Non-GAAP EPS of $0.26 for Q4 were 8.3% higher than the prior-year quarter's $0.24 per share. GAAP EPS of $0.11 for Q4 were 120% higher than the prior-year quarter's $0.05 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 92.4%, much better than the prior-year quarter. Operating margin was 7.2%, 460 basis points worse than the prior-year quarter. Net margin was 4.1%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $88.8 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $366.5 million. The average EPS estimate is $1.06.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 159 members out of 177 rating the stock outperform, and 18 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give EPIQ Systems 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 EPIQ Systems is outperform, with an average price target of $14.00.
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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. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.