Bottomline Technologies Beats Analyst Estimates on EPS

Bottomline Technologies (NAS: EPAY) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Bottomline Technologies beat expectations on revenues and beat expectations on earnings per share.

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

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

Revenue details
Bottomline Technologies chalked up revenue of $55.1 million. The 10 analysts polled by S&P Capital IQ expected to see sales of $54.0 million. Sales were 24% higher than the prior-year quarter's $44.3 million.


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

EPS details
Non-GAAP EPS came in at $0.27. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.26 per share on the same basis. GAAP EPS of $0.07 for Q2 were 17% higher than the prior-year quarter's $0.06 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 55.4%, 170 basis points worse than the prior-year quarter. Operating margin was 8.8%, 180 basis points better than the prior-year quarter. Net margin was 4.5%, 20 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $55.9 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $220.8 million. The average EPS estimate is $1.07.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 40 members out of 55 rating the stock outperform, and 15 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Bottomline Technologies 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 Bottomline Technologies is outperform, with an average price target of $27.

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At the time thisarticle 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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