Demandware Earnings: Here’s Why the Stock is Rising Now

Demandware Inc (NYSE:DWRE) had a loss and beat 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 up 0.48%.

Demandware Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.17 in the quarter versus EPS of $-0.12 in the year-earlier quarter.

Revenue: Rose 26.36% to $23.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Demandware Inc reported adjusted EPS loss of $0.17 per share. By that measure, the company beat the mean analyst estimate of $-0.21. It beat the average revenue estimate of $22.18 million.

Quoting Management: “China presents brands with an enormous opportunity but it is a unique environment that requires a unique approach,” said Eric Mestre, managing director in Accenture’s Consumer Goods & Services practice. “Brands must overcome legal and cultural challenges that many will not have encountered in other markets. The successful navigation of Chinese social and regulatory hurdles, while still providing a quality experience to Chinese consumers online, requires brands to adopt a tailor-made approach as Lacoste is doing with Accenture and Demandware.”

Key Stats (on next page)…

Revenue increased 13.12% from $20.51 million in the previous quarter. EPS increased to $-0.17 in the quarter versus EPS of $-0.13 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.13 and has not changed. For the current year, the average estimate is a loss of $0.37, which is the same with that ninety days ago.

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