JDA Software Group Goes Red

JDA Software Group (NAS: JDAS) reported earnings on Jan. 31. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share dropped to a loss.

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

Revenue details
JDA Software Group chalked up revenue of $174.2 million. The three analysts polled by S&P Capital IQ foresaw sales of $172.7 million. Sales were 3.2% higher than the prior-year quarter's $168.8 million.


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

EPS details
Non-GAAP EPS came in at $0.65. The three earnings estimates compiled by S&P Capital IQ averaged $0.62 per share on the same basis. GAAP EPS were -$0.03 for Q4 compared to $0.13 per share for the prior-year quarter.


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 63.2%, 210 basis points better than the prior-year quarter. Operating margin was 20.3%, 310 basis points better than the prior-year quarter. Net margin was -0.8%, 430 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $170.6 million. On the bottom line, the average EPS estimate is $0.58.

Next year's average estimate for revenue is $710.3 million. The average EPS estimate is $2.34.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 66 members out of 79 rating the stock outperform, and 13 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give JDA Software Group a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on JDA Software Group is outperform, with an average price target of $38.25.

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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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