Exa Corp Earnings: Here’s Why Investors are Happy Now

Exa Corp (NASDAQ:EXA) 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 5.59%.
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Exa Corp Earnings Cheat Sheet


Revenue: Rose 10.91% to $12.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS loss of $0.02 per share. By that measure, the company beat the mean analyst estimate of $-0.04. It beat the average revenue estimate of $12.17 million.

Quoting Management: “Revenue in the first quarter was at the high end of our guidance, increasing 11%, or 14% on a constant currency basis, from a year ago,” said Stephen Remondi, President and Chief Executive Officer of Exa. “With the return of customer spending materializing, we are beginning to see the results of investments that we made over the last several quarters in our field organization. We are particularly encouraged by the strong growth of 40% we saw in project revenue, which we regard as a leading indicator to future licensing activity. ”

Key Stats (on next page)…

Revenue decreased 4.58% from $13.1 million in the previous quarter. EPS decreased to $-0.02 in the quarter versus EPS of $-0.01 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 $0.04 to a loss $0. For the current year, the average estimate has moved down from a profit of $0.24 to a profit of $0.05 over the last ninety days.

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