Ultimate Software Group, Inc. (NASDAQ:ULTI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Ultimate Software Group, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 146.15% to $0.32 in the quarter versus EPS of $0.13 in the year-earlier quarter.
Revenue: Rose 25.06% to $97.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Ultimate Software Group, Inc. reported adjusted EPS income of $0.32 per share. By that measure, the company beat the mean analyst estimate of $0.26. It missed the average revenue estimate of $97.92 million.
Quoting Management: “The first quarter was a great start to achieving our 2013 goals. Our recurring revenues and operating margin both exceeded our expectations,” said Scott Scherr, founder, president and CEO of Ultimate. “A high percentage of our new customers continued to add talent and time management products to their core UltiPro HR and payroll solution purchases in the quarter.”
Key Stats (on next page)…
Revenue increased 6.21% from $92.18 million in the previous quarter. EPS decreased 15.79% from $0.38 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 profit of $0.32 and has not changed. For the current year, the average estimate has moved down from a profit of $1.39 to a profit of $1.37 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)