Ariba Beats Up on Analysts Yet Again
Ariba (NAS: ARBA) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Ariba met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share dropped to zero.
Margins dropped across the board.
Ariba reported revenue of $125.7 million. The 10 analysts polled by S&P Capital IQ anticipated a top line of $124.7 million. Sales were 39% higher than the prior-year quarter's $90.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.23. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.20 per share on the same basis. GAAP EPS dropped to zero from the prior-year quarter's $0.45.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 64.9%, 240 basis points worse than the prior-year quarter. Operating margin was 0.5%, 170 basis points worse than the prior-year quarter. Net margin was 0.1%, 4,650 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $129.2 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $527.2 million. The average EPS estimate is $0.93.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 101 members out of 147 rating the stock outperform, and 46 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Ariba a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ariba is outperform, with an average price target of $36.00.
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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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