EPIQ Systems Earnings: Here’s Why Investors are Ambivalent Now

EPIQ Systems, Inc. (NASDAQ:EPIQ) delivered a profit 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.

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EPIQ Systems, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 0% to $0.23 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 16.31% to $102.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: EPIQ Systems, Inc. reported adjusted EPS income of $0.23 per share. By that measure, the company missed the mean analyst estimate of $0.23. It beat the average revenue estimate of $98.86 million.

Quoting Management: Tom W. Olofson, chairman and CEO of Epiq Systems stated, “We are pleased that 2013 operating revenues are starting with such strength, reporting our first ever quarter exceeding $100 million. Our eDiscovery business had its fourth consecutive quarter of sequential operating revenue growth, and we supported one of the largest private anti-trust settlements in history. We continue to expand our global footprint and presence as we initiated operations in Tokyo during the first quarter. We also announced a 9.0 cents per share cash dividend during the quarter, reflecting our continued commitment to providing long-term shareholder value.”

Key Stats (on next page)…

Revenue increased 7.49% from $95.73 million in the previous quarter. EPS decreased 11.54% from $0.26 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.26 to a profit $0.27. For the current year, the average estimate has moved down from a profit of $1.06 to a profit of $1.05 over the last ninety days.

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