Computer Task Group Hits Estimates in Solid Quarter
Computer Task Group (NAS: CTGX) reported earnings on April 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 30 (Q1), Computer Task Group met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.
Margins improved across the board.
Computer Task Group booked revenue of $103.4 million. The three analysts polled by S&P Capital IQ hoped for sales of $103.7 million on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $95.9 million.
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 $0.20. The four earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share. GAAP EPS of $0.20 for Q1 were 18% higher than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.1%, 50 basis points better than the prior-year quarter. Operating margin was 5.4%, 60 basis points better than the prior-year quarter. Net margin was 3.3%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $106.7 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $432.5 million. The average EPS estimate is $0.88.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 51 members out of 52 rating the stock outperform, and one member rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Computer Task Group a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Computer Task Group is buy, with an average price target of $17.75.
Over the decades, small-cap stocks like Computer Task Group have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Computer Task Group to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.