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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