Bottomline Technologies Earnings Preview

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Bottomline Technologies (NAS: EPAY) will try to beat its earnings estimates for the third consecutive quarter. The company will unveil its latest earnings Thursday. Bottomline Technologies provides electronic payment, invoice, and document automation solutions to financial institutions and banks. Its processes and transactions involve global payments, invoice receipt and approval, collections and reporting.

What analysts say:

What our community says:
CAPS All-Stars are solidly backing the stock with 84.2% giving it an "outperform" rating. The majority of the Fools are in agreement with the All-Stars as 71.2% give it an "outperform" rating. Fools are keen on Bottomline Technologies, though the message boards have been quiet lately with only 21 posts in the past 30 days. Bottomline Technologies' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Bottomline Technologies' profit has risen year over year by an average of 51.4% over the past five quarters. The company's gross margin shrank by 3.4 percentage points in the last quarter. Revenue rose 22.6% while cost of sales rose 32.1% to $23.2 million from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q3

Q2

Q1

Q4

Gross Margin

52.5%

57.1%

55.9%

55.5%

Operating Margin

2.2%

7.0%

5.5%

4.8%

Net Margin

2.2%

4.7%

6.4%

2.7%

One final thing: If you want to keep tabs on Bottomline Technologies movements, and for more analysis on the company, make sure you add it to your watchlist.

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At the time this article was published

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