Quest Software's Latest EPS Tops Last Year's by 28%
Quest Software (NAS: QSFT) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Quest Software met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank significantly.
Gross margin dropped, operating margin grew, and net margin dropped.
Quest Software logged revenue of $245.9 million. The eight analysts polled by S&P Capital IQ predicted a top line of $243.6 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $216.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.51. The nine earnings estimates compiled by S&P Capital IQ averaged $0.52 per share on the same basis. GAAP EPS of $0.15 for Q4 were 63% lower than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 89.3%, 20 basis points worse than the prior-year quarter. Operating margin was 18.3%, 390 basis points better than the prior-year quarter. Net margin was 5.1%, 1,200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $210.9 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $927.4 million. The average EPS estimate is $1.69.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 99 members out of 106 rating the stock outperform, and seven members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Quest Software a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quest Software is hold, with an average price target of $22.64.
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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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