The 10-second takeaway
For the quarter ended June 30 (Q2), Informatica met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew. GAAP earnings per share shrank.
Margins dropped across the board.
Informatica logged revenue of $222.4 million. The 24 analysts polled by S&P Capital IQ looked for a top line of $220.7 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $190.5 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 25 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. Non-GAAP EPS of $0.31 for Q2 were 6.9% higher than the prior-year quarter's $0.29 per share. GAAP EPS of $0.16 for Q2 were 11% lower than the prior-year quarter's $0.18 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 82.5%, 30 basis points worse than the prior-year quarter. Operating margin was 11.5%, 330 basis points worse than the prior-year quarter. Net margin was 8.2%, 230 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $222.6 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $920.6 million. The average EPS estimate is $1.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 215 members out of 234 rating the stock outperform, and 19 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Informatica a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Informatica is outperform, with an average price target of $38.56.
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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.