Descartes Systems Group Meets on the Top Line, Misses Where It Counts
Descartes Systems Group (NAS: DSGX) reported earnings on May 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q1), Descartes Systems Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Gross margins dropped, operating margins shrank, and net margins increased.
Descartes Systems Group tallied revenue of $29.9 million. The 11 analysts polled by S&P Capital IQ wanted to see a top line of $30.1 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $27.1 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 $0.07. The nine earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS of $0.04 for Q1 were 33% higher than the prior-year quarter's $0.03 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 64.6%, 250 basis points worse than the prior-year quarter. Operating margin was 14.8%, 250 basis points worse than the prior-year quarter. Net margin was 8.7%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $31.2 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $125.9 million. The average EPS estimate is $0.54.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 43 members out of 44 rating the stock outperform, and one member rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Descartes Systems Group a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Descartes Systems Group is outperform, with an average price target of $10.05.
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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.