The 10-second takeaway
For the quarter ended June 30 (Q2), Accelrys missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share didn't change. GAAP earnings per share expanded.
Gross margins shrank, operating margins dropped, net margins increased.
Accelrys booked revenue of $39.0 million. The six analysts polled by S&P Capital IQ foresaw revenue of $42.8 million on the same basis. GAAP reported sales were 1.7% higher than the prior-year quarter's $38.4 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 $0.07. The five earnings estimates compiled by S&P Capital IQ anticipated $0.07 per share. Non-GAAP EPS of $0.07 were the same as the prior-year quarter. GAAP EPS were $0.35 for Q2 against -$0.01 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 72.9%, 100 basis points worse than the prior-year quarter. Operating margin was -13.7%, 400 basis points worse than the prior-year quarter. Net margin was 50.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $44.4 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $176.9 million. The average EPS estimate is $0.32.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 52 members out of 69 rating the stock outperform, and 17 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Accelrys a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Accelrys is outperform, with an average price target of $11.00.
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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. 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.