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.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Informatica makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Informatica to My Watchlist.
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 recommends Informatica. 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.