VASCO Data Security International Beats Expectations But Takes A Step Back Anyway

Seth Jayson, The Motley Fool
Updated

VASCO Data Security International (NAS: VDSI) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), VASCO Data Security International met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased significantly.


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

Revenue details
 VASCO Data Security International booked revenue of $36.3 million. The four analysts polled by S&P Capital IQ looked for net sales of $36.0 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $41.4 million.

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 $0.12. The five earnings estimates compiled by S&P Capital IQ forecast $0.07 per share. GAAP EPS of $0.12 for Q3 were 140% higher than the prior-year quarter's $0.05 per share. (The prior-year quarter included -$0.10 per share in earnings from discontinued operations.)

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 65.7%, 140 basis points worse than the prior-year quarter. Operating margin was 17.3%, 70 basis points worse than the prior-year quarter. Net margin was 12.4%, 700 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $37.5 million. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $152.4 million. The average EPS estimate is $0.40.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,948 members out of 2,014 rating the stock outperform, and 66 members rating it underperform. Among 448 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 439 give VASCO Data Security International a green thumbs-up, and nine 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 $11.06.

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The article VASCO Data Security International Beats Expectations But Takes A Step Back Anyway originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend VASCO Data Security International. 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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