Ultimate Software Group Beats on Both Top and Bottom Lines
Ultimate Software Group (NAS: ULTI) reported earnings on May 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Ultimate Software Group beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Gross margin dropped, operating margin grew, and net margin grew.
Ultimate Software Group reported revenue of $78.3 million. The 14 analysts polled by S&P Capital IQ looked for revenue of $76.0 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $64.5 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 $0.13. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. GAAP EPS of $0.04 for Q1 were 300% higher than the prior-year quarter's $0.01 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 54.4%, 100 basis points worse than the prior-year quarter. Operating margin was 2.7%, 110 basis points better than the prior-year quarter. Net margin was 1.3%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $78.9 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $331.4 million. The average EPS estimate is $1.01.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 82 members out of 117 rating the stock outperform, and 35 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Ultimate Software Group 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 Ultimate Software Group is hold, with an average price target of $70.11.
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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.