ClickSoftware Technologies Earnings: Here’s Why Investors are Selling Shares Now

ClickSoftware Technologies Ltd. (NASDAQ:CKSW) had a loss and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.25%.

ClickSoftware Technologies Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.07 in the quarter versus EPS of $0.03 in the year-earlier quarter.

Revenue: Rose 9.88% to $24.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ClickSoftware Technologies Ltd. reported adjusted EPS loss of $0.07 per share. By that measure, the company met the mean analyst estimate of $-0.07. It beat the average revenue estimate of $24.5 million.

Quoting Management: “We continue to implement our strategy focused on growing our mobile and cloud revenues and remain confident doing so will properly position us to extend our leadership in the workforce management space and secure profitable revenue growth over the long term. Revenues in the second quarter, while still representing 10% year-over-year growth, came in lower than expected. This is primarily due to a faster than expected shift in our revenues to cloud-based software-as-a-service (NASDAQ:SAAS) sales, which also caused some delays in deal closing processes and smaller initial deal size. Still, the cloud trend is a positive development for ClickSoftware that will benefit us over the long-term,” said Dr. Moshe BenBassat, ClickSoftware’s CEO and Founder. “Additionally, we continue to establish winning teams in our growth territories – Latin America and Russia. In some countries, the macro economic conditions are challenging resulting in longer than expected closing processes.”

Key Stats (on next page)…

Revenue increased 0.65% from $24.54 million in the previous quarter. EPS decreased to $-0.07 in the quarter versus EPS of $0.02 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.08 to a profit $0.02. For the current year, the average estimate has moved down from a profit of $0.28 to a profit of $0.07 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)