TIBCO Software Hits Estimates, But GAAP Results Lag Last Year's

Seth Jayson, The Motley Fool
Updated

TIBCO Software (NAS: TIBX) reported earnings on June 20. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 2 (Q2), TIBCO Software met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.


Margins contracted across the board.

Revenue details
 TIBCO Software booked revenue of $245.8 million. The 19 analysts polled by S&P Capital IQ expected a top line of $246.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.18. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. Non-GAAP EPS of $0.18 for Q2 were 31% lower than the prior-year quarter's $0.26 per share. GAAP EPS of $0.05 for Q2 were 69% lower than the prior-year quarter's $0.16 per share.

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 69.9%, 230 basis points worse than the prior-year quarter. Operating margin was 8.7%, 660 basis points worse than the prior-year quarter. Net margin was 3.5%, 720 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $258.2 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $0.97.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 525 members out of 551 rating the stock outperform, and 26 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 133 give TIBCO Software a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TIBCO Software is outperform, with an average price target of $24.00.

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 TIBCO Software 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 TIBCO Software Hits Estimates, But GAAP Results Lag Last Year's 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 recommends Tibco Software. 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 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement