Descartes Systems Group
The 10-second takeaway
For the quarter ended April 30 (Q1), Descartes Systems Group beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share stayed the same.
Gross margins expanded, operating margins shrank, net margins dropped.
Descartes Systems Group notched revenue of $34.0 million. The 11 analysts polled by S&P Capital IQ hoped for sales of $33.7 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $29.9 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 $0.16. The five earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. Non-GAAP EPS of $0.16 for Q1 were 14% higher than the prior-year quarter's $0.14 per share. GAAP EPS of $0.04 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 69.0%, 440 basis points better than the prior-year quarter. Operating margin was 15.1%, 110 basis points worse than the prior-year quarter. Net margin was 8.2%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $37.3 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $150.4 million. The average EPS estimate is $0.70.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 43 members out of 44 rating the stock outperform, and one members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Descartes Systems Group 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 Descartes Systems Group is outperform, with an average price target of $10.97.
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