The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict SolarWinds's revenues will increase 26.8% and EPS will grow 23.3%.
The average estimate for revenue is $75.7 million. On the bottom line, the average EPS estimate is $0.37.
Last quarter, SolarWinds reported revenue of $73.5 million. GAAP reported sales were 32% higher than the prior-year quarter's $55.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.36. GAAP EPS of $0.29 for Q4 were 32% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 92.8%, 110 basis points worse than the prior-year quarter. Operating margin was 42.4%, 200 basis points worse than the prior-year quarter. Net margin was 30.3%, 100 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $336.2 million. The average EPS estimate is $1.59.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 130 members out of 161 rating the stock outperform, and 31 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give SolarWinds a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SolarWinds is outperform, with an average price target of $56.36.
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 SolarWinds 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 SolarWinds 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 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.
More from The Motley Fool
Why SolarWinds, Inc. Is Soaring Higher Today
SolarWinds, Inc. is up 16.7% at 12:40 p.m. Wednesday after announcing a deal to be acquired. Here are the details.
Why SolarWinds, Inc. Is Diving 24% Today
A miss on revenue and downgrade from Deutsche Bank is a disaster recipe for SolarWinds' stock price today.
SolarWinds Acquires Performance Management Software Company
New addition will allow IT management software provider to improve database performance