Forrester Research Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Forrester Research (NAS: FORR) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Forrester Research met expectations on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue improved and GAAP earnings per share grew.


Margins improved across the board.

Revenue details
Forrester Research logged revenue of $70.3 million. The four analysts polled by S&P Capital IQ looked for revenue of $70.2 million on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $65.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.22. The three earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. GAAP EPS of $0.14 for Q1 were 7.7% higher than the prior-year quarter's $0.13 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 61.7%, 50 basis points better than the prior-year quarter. Operating margin was 8.5%, 150 basis points better than the prior-year quarter. Net margin was 4.5%, 10 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $80.6 million. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $311.5 million. The average EPS estimate is $1.21.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 65 members out of 72 rating the stock outperform, and seven members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Forrester Research a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Forrester Research is outperform, with an average price target of $36.75.

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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. He is the 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 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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