The 10-second takeaway
For the quarter ended March 31 (Q1), Informatica beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Informatica logged revenue of $214.3 million. The 26 analysts polled by S&P Capital IQ expected revenue of $202.1 million on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $196.0 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 $0.31. The 26 earnings estimates compiled by S&P Capital IQ forecast $0.31 per share. Non-GAAP EPS of $0.31 for Q1 were 11% lower than the prior-year quarter's $0.35 per share. GAAP EPS of $0.16 for Q1 were 33% lower than the prior-year quarter's $0.24 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 82.2%, 170 basis points worse than the prior-year quarter. Operating margin was 12.3%, 760 basis points worse than the prior-year quarter. Net margin was 8.4%, 510 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $215.8 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $881.0 million. The average EPS estimate is $1.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 217 members out of 236 rating the stock outperform, and 19 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Informatica 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 Informatica is hold, with an average price target of $37.12.
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