Parametric Technology Goes Negative

Parametric Technology (NAS: PMTC) reported earnings on Oct. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Parametric Technology missed slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped to a loss.

Gross margins grew, operating margins grew, net margins shrank.

Revenue details
Parametric Technology notched revenue of $325.3 million. The 11 analysts polled by S&P Capital IQ expected a top line of $331.2 million on the same basis. GAAP reported sales were 4.2% lower than the prior-year quarter's $339.4 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 $0.50. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS were -$0.71 for Q4 compared to $0.32 per share for the prior-year quarter.

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 73.0%, 200 basis points better than the prior-year quarter. Operating margin was 17.7%, 220 basis points better than the prior-year quarter. Net margin was -25.8%, 3,690 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $335.9 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $1.40 billion. The average EPS estimate is $1.77.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 75 members out of 92 rating the stock outperform, and 17 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Parametric Technology a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Parametric Technology is outperform, with an average price target of $25.45.

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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.

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