Informatica Catches Analysts Sleeping Again

Informatica (NAS: INFA) reported earnings on Jan. 26. Here are the numbers you need to know.

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

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

Gross margins dropped, operating margins grew, net margins expanded.

Revenue details
Informatica reported revenue of $227.1 million. The 19 analysts polled by S&P Capital IQ anticipated revenue of $226.1 million. Sales were 15% higher than the prior-year quarter's $198.0 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.47. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.44 per share on the same basis. GAAP EPS of $0.24 for Q4 were 19% higher than the prior-year quarter's $0.32 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 85.4%, 20 basis points worse than the prior-year quarter. Operating margin was 25.8%, 120 basis points better than the prior-year quarter. Net margin was 18.7%, 120 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $194.3 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $900.4 million. The average EPS estimate is $1.62.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 236 members out of 253 rating the stock outperform, and 17 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Informatica a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Informatica is outperform, with an average price target of $51.24.

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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. Motley Fool newsletter services have recommended buying shares of Informatica. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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