The 10-second takeaway
For the quarter ended March 31 (Q1), EPIQ Systems crushed expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share didn't change. GAAP earnings per share grew significantly.
Gross margins grew, operating margins dropped, net margins increased.
EPIQ Systems reported revenue of $123.6 million. The two analysts polled by S&P Capital IQ predicted a top line of $99.3 million on the same basis. GAAP reported sales were 49% higher than the prior-year quarter's $82.8 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 $0.23. The three earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. Non-GAAP EPS of $0.23 were the same as the prior-year quarter. GAAP EPS of $0.11 for Q1 were 83% higher than the prior-year quarter's $0.06 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 84.2%, much better than the prior-year quarter. Operating margin was 5.8%, 80 basis points worse than the prior-year quarter. Net margin was 3.2%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $99.5 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $407.9 million. The average EPS estimate is $1.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 168 members out of 186 rating the stock outperform, and 18 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give EPIQ Systems a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EPIQ Systems is outperform, with an average price target of $15.00.
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