MicroStrategy Beats on Revenue, Matches Expectations on EPS
MicroStrategy (NAS: MSTR) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), MicroStrategy beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins contracted, and net margins dropped.
MicroStrategy reported revenue of $145.1 million. The nine analysts polled by S&P Capital IQ hoped for a top line of $141.3 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $122 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 $0.02. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. GAAP EPS of $0.02 for Q1 were 80% lower than the prior-year quarter's $0.10 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%, 30 basis points better than the prior-year quarter. Operating margin was 0.3%, 60 basis points worse than the prior-year quarter. Net margin was 0.2%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $154.9 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $642.8 million. The average EPS estimate is $3.06.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 185 members rating the stock outperform and 31 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give MicroStrategy a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MicroStrategy is hold, with an average price target of $136.43.
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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 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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