American Software (AMSWA) reported $25.69 million in revenue for the quarter ending October 2023, representing a year-over-year decline of 18.3%. Earnings per share of $0.08 for the same period, compared to $0.10 a year ago.
The reported revenue represents a surprise of -4.12% versus the Zacks Consensus Estimate of $26.8 million. With the consensus EPS estimate at $0.08, the company didn’t deliver an EPS surprise.
While investors scrutinize year-over-year revenue and profit changes and how they compare to Wall Street expectations to determine their next move, some key metrics always provide a more accurate picture of a company’s financial health.
Because these measures affect top- and bottom-line performance, comparing them to a year ago’s numbers and what analysts estimate helps investors more accurately predict a stock’s price movement.
Here’s how American Software performed in the just-reported quarter in terms of the metrics most frequently monitored and projected by Wall Street analysts:
Revenue- Professional services and others: $4 million compared to the average estimate of $7.55 million from two analysts. The reported number represents a change of -58.3% year over year.
Income – Maintenance: $8.10 million versus $7.82 million average estimate by two analysts. Compared to the previous year’s quarter, this figure represents a change of -8.3%.
Revenue – License fees: $0.23 million versus the average two analyst estimate of $0.30 million. The reported number represents a year-over-year change of -66.7%.
Income – Subscription costs: $13.36 million versus $14.03 million average estimate by two analysts. Compared to the previous year’s quarter, this figure represents a change of +8.4%.
Gross margin on subscription costs: $8.75 million versus $9.80 million average estimate by two analysts.
Gross margin on maintenance: $6.37 million versus the average two analyst estimate of $6.37 million.
Gross margin on professional services and other: $1.15 million versus the average two analyst estimate of $2.08 million.
Gross margin on licensing costs: $0.32 million versus the average two analyst estimate of $0.21 million.
View all key business statistics for US software here>>>
Shares of American Software have returned -0.3% over the past month, versus a +4.2% rise in the Zacks S&P 500 composite. The stock currently carries a Zacks Rank of #3 (Hold), indicating it could perform in line with the broader market in the near term.
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