VASCO Data Security International Whiffs on Revenues

Seth Jayson, The Motley Fool
Updated

VASCO Data Security International (NAS: VDSI) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), VASCO Data Security International whiffed on revenues and missed estimates on earnings per share.

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


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

Revenue details
VASCO Data Security International logged revenue of $32.3 million. The five analysts polled by S&P Capital IQ expected sales of $37.7 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $36.4 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 $0.05. The four earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. GAAP EPS of $0.05 for Q1 were 17% lower than the prior-year quarter's $0.06 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 67.8%, 540 basis points better than the prior-year quarter. Operating margin was 6.9%, 150 basis points worse than the prior-year quarter. Net margin was 5.9%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $44.8 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $176.8 million. The average EPS estimate is $0.53.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,982 members out of 2,048 rating the stock outperform, and 66 members rating it underperform. Among 521 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 510 give VASCO Data Security International a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VASCO Data Security International is outperform, with an average price target of $10.81.

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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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