Canada's Enghouse Systems misses Q1 revenue estimates
Overview
Canada enterprise software firm's Q1 revenue fell 3% and missed analyst expectations
Q1 adjusted EBITDA declined and missed analyst estimates
Company completed acquisition of Sixbell Telco in Latin America
Result Drivers
RECURRING REVENUE DECLINE - Co said recurring revenue, including SaaS and maintenance, fell 3.8% as it continued to prioritize this stream
RESTRUCTURING INITIATIVES - Co continued restructuring and alignment efforts to support operational efficiency and profitability
ASSET MANAGEMENT GROWTH - Asset Management Group revenue increased over the prior year quarter due to segment expansion
Company press release: ID:nCNWWGF8xa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Miss | C$120.10 mln | C$124.58 mln (4 Analysts) |
Q1 EPS |
| C$0.32 |
|
Q1 Net Income |
| C$17.50 mln |
|
Q1 Adjusted EBITDA | Miss | C$31.15 mln | C$33.57 mln (4 Analysts) |
Q1 Adjusted EBITDA Margin |
| 25.90% |
|
Q1 Operating Expenses |
| C$46.39 mln |
|
Q1 Pretax Profit |
| C$23.41 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Enghouse Systems Ltd is C$22.00, about 22.8% above its March 11 closing price of C$17.91
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
