Open Text Corp. (NASDAQ:OTEX) 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 2.2%.
Open Text Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 24.75% to $1.26 in the quarter versus EPS of $1.01 in the year-earlier quarter.
Revenue: Rose 15.51% to $337.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Open Text Corp. reported adjusted EPS income of $1.26 per share. By that measure, the company missed the mean analyst estimate of $1.30. It missed the average revenue estimate of $345.68 million.
Quoting Management: “We are committed to delivering value to our stockholders through technology innovation, strategic acquisitions and now through a dividend,” said OpenText CEO Mark J. Barrenechea. “We generated $333.1 million in operating cash flow over the last twelve months and we are running our business at record operating margins. We have always been committed to rewarding our stockholders’ investments in OpenText and the Board has decided that it is the right time to declare a dividend for our stockholders.”
Key Stats (on next page)…
Revenue decreased 4.11% from $352.18 million in the previous quarter. EPS decreased 20.25% from $1.58 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 $1.42 to a profit $1.44. For the current year, the average estimate has moved up from a profit of $5.35 to a profit of $5.59 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)