The 10-second takeaway
For the quarter ended June 30 (Q2), MicroStrategy met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
MicroStrategy logged revenue of $137.9 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $139.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$0.14. The seven earnings estimates compiled by S&P Capital IQ averaged $0.39 per share. GAAP EPS were -$0.14 for Q2 versus $0.65 per share for 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 73.6%, 60 basis points worse than the prior-year quarter. Operating margin was -1.5%, 820 basis points worse than the prior-year quarter. Net margin was -1.1%, 620 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $145.0 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $580.1 million. The average EPS estimate is $0.75.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 184 members out of 214 rating the stock outperform, and 30 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give MicroStrategy a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MicroStrategy is hold, with an average price target of $107.57.
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 MicroStrategy 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 MicroStrategy 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.