The 10-second takeaway
For the quarter ended June 30 (Q2), Advent Software beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted to a loss.
Gross margins increased, operating margins dropped, net margins dropped.
Advent Software reported revenue of $96.1 million. The three analysts polled by S&P Capital IQ foresaw sales of $94.6 million on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $89.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.37. The four earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. Non-GAAP EPS of $0.37 for Q2 were 54% higher than the prior-year quarter's $0.24 per share. GAAP EPS were -$0.08 for Q2 against $0.14 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 81.3%, much better than the prior-year quarter. Operating margin was 5.2%, 820 basis points worse than the prior-year quarter. Net margin was -4.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $95.0 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $379.6 million. The average EPS estimate is $1.24.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 69 members out of 98 rating the stock outperform, and 29 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Advent Software 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 Advent Software is outperform, with an average price target of $34.33.
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