Forrester Research Earnings: Here’s Why Investors are Ambivalent Now

Forrester Research Inc. (NASDAQ:FORR) delivered a profit 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.

Forrester Research Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.89% to $0.31 in the quarter versus EPS of $0.36 in the year-earlier quarter.

Revenue: Decreased 1.13% to $78.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Forrester Research Inc. reported adjusted EPS income of $0.31 per share. By that measure, the company beat the mean analyst estimate of $0.26. It beat the average revenue estimate of $77.95 million.

Quoting Management: “Forrester met its revenue guidance and exceeded operating margin and earnings per share for the second quarter,” said George F. Colony, Forrester’s chairman and chief executive officer. “However, our recovery remains a work in progress and will not be without periodic setbacks. We continue to inject greater accountability, more discipline, and seasoned leadership into our organization. This maturation process will continue through the rest of this year.”

Key Stats (on next page)…

Revenue increased 9.37% from $71.5 million in the previous quarter. EPS increased 47.62% from $0.21 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 $0.17 to a profit $0.16. For the current year, the average estimate is a profit of $0.85, 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)

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