Descartes Systems Group
The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Descartes Systems Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Gross margins grew, operating margins contracted, net margins expanded.
Descartes Systems Group tallied revenue of $33.8 million. The eight analysts polled by S&P Capital IQ wanted to see revenue of $33.4 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $29.6 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 $0.20. The five earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. Non-GAAP EPS of $0.20 for Q4 were 150% higher than the prior-year quarter's $0.08 per share. GAAP EPS of $0.12 for Q4 were 71% higher than the prior-year quarter's $0.07 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 68.0%, 220 basis points better than the prior-year quarter. Operating margin was 12.5%, 200 basis points worse than the prior-year quarter. Net margin was 23.0%, 770 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $34.1 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $142.6 million. The average EPS estimate is $0.65.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 42 members out of 43 rating the stock outperform, and one members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Descartes Systems Group 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 Descartes Systems Group is outperform, with an average price target of $10.30.
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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.