The 10-second takeaway
For the quarter ended March 31 (Q1), Tangoe beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased.
Gross margins shrank, operating margins grew, net margins grew.
Tangoe booked revenue of $44.9 million. The six analysts polled by S&P Capital IQ hoped for revenue of $44.3 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $34.1 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 $0.15. The six earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. Non-GAAP EPS of $0.15 for Q1 were 67% higher than the prior-year quarter's $0.09 per share. GAAP EPS of $0.03 for Q1 were much higher than the prior-year quarter's $0.00 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 53.6%, 20 basis points worse than the prior-year quarter. Operating margin was 2.4%, 70 basis points better than the prior-year quarter. Net margin was 2.5%, 190 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $45.8 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $190.9 million. The average EPS estimate is $0.69.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 20 members out of 30 rating the stock outperform, and 10 members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give Tangoe a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tangoe is buy, with an average price target of $26.67.
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