The Gory Details on EPIQ Systems' Double Fumble
EPIQ Systems (NAS: EPIQ) reported earnings on Feb. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), EPIQ Systems missed estimates on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins shrank, and net margins dropped.
EPIQ Systems reported revenue of $73.6 million. The three analysts polled by S&P Capital IQ foresaw revenue of $77.5 million on the same basis. GAAP reported sales were 9.0% higher than the prior-year quarter's $67.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.24. The three earnings estimates compiled by S&P Capital IQ predicted $0.26 per share on the same basis. GAAP EPS of $0.05 for Q4 were 38% lower than the prior-year quarter's $0.08 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 60.6%, 180 basis points better than the prior-year quarter. Operating margin was 7.9%, 600 basis points worse than the prior-year quarter. Net margin was 2.6%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $88.3 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $364.3 million. The average EPS estimate is $1.03.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 161 members out of 180 rating the stock outperform, and 19 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give EPIQ Systems a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EPIQ Systems is outperform, with an average price target of $14.50.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not EPIQ Systems makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add EPIQ Systems 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.