Comment
0
Tweet
0
Print
RSS Feeds

Coming Soon: SolarWinds Earnings

Monday - 4/29/2013, 2:00am  ET

SolarWinds is expected to report Q1 earnings on April 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict SolarWinds's revenues will increase 26.8% and EPS will grow 23.3%.

The average estimate for revenue is $75.7 million. On the bottom line, the average EPS estimate is $0.37.

Revenue details
Last quarter, SolarWinds reported revenue of $73.5 million. GAAP reported sales were 32% higher than the prior-year quarter's $55.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.36. GAAP EPS of $0.29 for Q4 were 32% higher than the prior-year quarter's $0.22 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 92.8%, 110 basis points worse than the prior-year quarter. Operating margin was 42.4%, 200 basis points worse than the prior-year quarter. Net margin was 30.3%, 100 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $336.2 million. The average EPS estimate is $1.59.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 130 members out of 161 rating the stock outperform, and 31 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give SolarWinds a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SolarWinds is outperform, with an average price target of $56.36.

Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not SolarWinds makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

This article was originally published as Coming Soon: SolarWinds Earningson Fool.com

Copyright © 2009 The Motley Fool, LLC. All rights reserved.