Advent Software Beats on EPS, but GAAP Results Lag
Advent Software (NAS: ADVS) reported earnings on Feb. 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Advent Software beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Advent Software notched revenue of $84.6 million. The four analysts polled by S&P Capital IQ hoped for revenue of $82.0 million. Sales were 14% higher than the prior-year quarter's $72.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.22. The five earnings estimates compiled by S&P Capital IQ anticipated $0.19 per share on the same basis. GAAP EPS of $0.12 for Q3 were 29% lower than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 69.1%, 340 basis points worse than the prior-year quarter. Operating margin was 12.3%, 350 basis points worse than the prior-year quarter. Net margin was 7.6%, 460 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $85.9 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $325.8 million. The average EPS estimate is $0.78.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 57 members out of 92 rating the stock outperform, and 35 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Advent Software a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advent Software is hold, with an average price target of $29.00.
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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.
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