Forrester Research Misses on Revenues but Beats on EPS

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Forrester Research (NAS: FORR) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Forrester Research missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.

Margins grew across the board.

Revenue details
Forrester Research notched revenue of $74.7 million. The four analysts polled by S&P Capital IQ foresaw a top line of $76.2 million. GAAP sales were 11% higher than the prior-year quarter's $67.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.40. The four earnings estimates compiled by S&P Capital IQ averaged $0.36 per share on the same basis. GAAP EPS of $0.38 for Q4 were 111% higher than the prior-year quarter's $0.18 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 66.5%, 390 basis points better than the prior-year quarter. Operating margin was 18.5%, 800 basis points better than the prior-year quarter. Net margin was 11.9%, 570 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $74.4 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $319.1 million. The average EPS estimate is $1.41.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 65 members out of 73 rating the stock outperform, and eight members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Forrester Research a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forrester Research is outperform, with an average price target of $41.67.

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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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