SPS Commerce Beats on EPS but GAAP Results Lag
SPS Commerce (NAS: SPSC) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), SPS Commerce met expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted.
Margins shrank across the board.
SPS Commerce reported revenue of $16.5 million. The eight analysts polled by S&P Capital IQ looked for a top line of $16.5 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $12.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The six earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS of $0.02 for Q1 were 50% lower than the prior-year quarter's $0.04 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 73.1%, 60 basis points worse than the prior-year quarter. Operating margin was 2.8%, 120 basis points worse than the prior-year quarter. Net margin was 1.5%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $17.1 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $70.3 million. The average EPS estimate is $0.41.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SPS Commerce is outperform, with an average price target of $31.43.
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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. 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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