ClickSoftware Technologies Earnings: Here’s Why Investors Like These Results

ClickSoftware Technologies Ltd. (NASDAQ:CKSW) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3%.

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ClickSoftware Technologies Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 50% to $0.02 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Rose 12.13% to $24.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ClickSoftware Technologies Ltd. reported adjusted EPS income of $0.02 per share. By that measure, the company missed the mean analyst estimate of $0.03. It missed the average revenue estimate of $26.33 million.

Quoting Management: “We continue to execute on our strategy to accelerate annual growth by over 20%. In order to achieve both our short- and long-term goals, investments in product development and global territory expansion initiatives continue. These investments impacted our profitability in the first quarter; however, we anticipated some level of quarterly fluctuation in our earnings projections and remain confident in our strategy. Based on our progress through the first quarter we are reiterating revenue and EPS guidance for 2013,” said Dr. Moshe BenBassat, ClickSoftware’s Chairman and CEO.

Key Stats (on next page)…

Revenue decreased 13.73% from $28.4 million in the previous quarter. EPS decreased 84.62% from $0.13 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 $0.09 to a profit $0.04. For the current year, the average estimate has moved down from a profit of $0.44 to a profit of $0.28 over the last ninety days.

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

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