It's Showtime for MicroStrategy

Seth Jayson, The Motley Fool
Updated

MicroStrategy (NAS: MSTR) is expected to report Q3 earnings around Oct. 30. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict MicroStrategy's revenues will increase 5.5% and EPS will expand 342.1%.

The average estimate for revenue is $149.5 million. On the bottom line, the average EPS estimate is $0.84.


Revenue details
 Last quarter, MicroStrategy recorded revenue of $141.8 million. GAAP reported sales were 2.7% higher than the prior-year quarter's $138.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, EPS came in at $0.65. GAAP EPS of $0.65 for Q2 were 150% higher than the prior-year quarter's $0.26 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 74.2%, 80 basis points worse than the prior-year quarter. Operating margin was 6.7%, 420 basis points better than the prior-year quarter. Net margin was 5.1%, 300 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $607.3 million. The average EPS estimate is $3.07.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 187 members out of 219 rating the stock outperform, and 32 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 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 $148.57.

Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not MicroStrategy makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

The article It's Showtime for MicroStrategy 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. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement