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Does The Street Have Forrester Research Figured Out?

By Seth Jayson - Updated Apr 10, 2017 at 1:48PM

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Checking expectations

Forrester Research (Nasdaq: FORR) is expected to report Q1 earnings on April 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Forrester Research's revenues will compress -3.5% and EPS will contract -45.5%.

The average estimate for revenue is $67.8 million. On the bottom line, the average EPS estimate is $0.12.

Revenue details
Last quarter, Forrester Research reported revenue of $75.1 million. GAAP reported sales were 0.6% higher than the prior-year quarter's $74.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.28. GAAP EPS of $0.19 for Q4 were 50% 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.

Recent performance
For the preceding quarter, gross margin was 61.7%, 480 basis points worse than the prior-year quarter. Operating margin was 9.8%, 960 basis points worse than the prior-year quarter. Net margin was 5.7%, 620 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $298.7 million. The average EPS estimate is $0.83.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 67 members out of 75 rating the stock outperform, and eight members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Forrester Research a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forrester Research is hold, with an average price target of $33.00.

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Stocks Mentioned

Forrester Research Inc. Stock Quote
Forrester Research Inc.
FORR
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