Research Desk Line-up: eGain Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 27, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on The Descartes Systems Group Inc. (NASDAQ: DSGX) ("Descartes"), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=DSGX, following the Company's release of its financial results on September 06, 2017, for the second quarter of the fiscal year 2018. The Company's revenue increased 13.4% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Business Software & Services industry. Pro-TD has currently selected eGain Corporation (NASDAQ: EGAN) for due-diligence and potential coverage as the Company announced on September 06, 2017, its financial results for Q4 FY17 and full year which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on eGain when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DSGX; also brushing on EGAN. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For the three months ended July 31, 2017, Descartes' revenue increased 13.4% to $57.29 million from $50.52 million in Q2 FY17. The revenue figures surpassed analysts' expectations of $55.7 million.
During Q2 FY18, Descartes' gross profit increased 14.2% to $41.95 million from $36.73 million in Q2 FY17. For the reported quarter, the Company's gross margin was at par with the 73% of revenue in Q2 FY17.
For the reported quarter, the Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 15.1% to $19.8 million from $17.2 million in Q2 FY17. During Q2 FY18, Descartes' adjusted EBITDA margin increased 100 basis points to 35% of revenue from 34% of revenue in Q2 FY17.
For the reported quarter, Descartes' S&M expenses increased 20% to $7.61 million from $6.34 million in Q2 FY17. During Q2 FY18, the Company's R&D expenses increased 14.1% to $10.16 million from $8.90 million in Q2 FY17. For the reported quarter, the Company's G&A expenses increased 3.6% to $6.18 million from $5.96 million in Q2 FY17.
During Q2 FY18, Descartes' operating income increased 29.7% to $9.33 million from $7.19 million in Q2 FY17. For the reported quarter, the Company's operating margin increased 200 basis points to 16.2% of revenue from 14.2% of revenue in Q2 FY17.
During Q2 FY18, Descartes' net income increased 23.8% to $7.16 million on a y-o-y basis from $5.78 million in Q2 FY17. During Q2 FY18, Descartes' diluted earnings per share (EPS) increased 12.5% to $0.09 on a y-o-y basis from $0.08 in Q2 FY17. The diluted EPS was below analysts' expectations of $0.10.
On May 18, 2017, Descartes acquired Z-Firm LLC, a US-based provider of e-commerce multi-carrier parcel shipping solutions for small- to medium-sized businesses (SMBs).
On June 01, 2017, the Company acquired all the assets of PCSTrac, Inc., including certain related assets of Progressive Computer Services Inc. dba PCS Technologies.
On August 14, 2017, Descartes acquired MacroPoint LLC, an electronic transportation network providing location-based truck tracking and predictive freight capacity data content.
Segment Details
Services - For the reported quarter, the Company's Services segment's revenue increased 13.3% to $55.1 million from $48.6 million in Q2 FY17. For the reported quarter, the segment's gross profit increased 14.5% to $40.2 million from $35.1 million in Q2 FY17. During Q2 FY18, the segment's gross margin increased 70 basis points to 72.9% of revenue from 72.2% of revenue in Q2 FY17.
License - During Q2 FY18, Descartes' License segment's revenue increased 15.7% to $2.2 million from $1.9 million in Q2 FY17. For the reported quarter, the segment's gross profit increased 12.5% to $1.8 million from $1.6 million in Q2 FY17. During Q2 FY18, the segment's gross margin decreased 240 basis points to 81.8% of revenue from 84.2% of revenue in Q2 FY17.
Balance Sheet
As on July 31, 2017, Descartes' cash increased 129.4% to $87.53 million from $38.14 million in Q4 FY17.
During Q2 FY18, the Company's net accounts receivable increased 6% to $30.87 million from $29.11 million in Q4 FY17.
During Q2 FY18, Descartes' inventories increased 11.9% to $187,000 from $167,000 in Q4 FY17.
For the reported quarter, the Company's accounts payable increased 87.6% to $8.78 million from $4.68 million in Q4 FY17.
During Q2 FY18, Descartes' cash provided by operating activities increased 2.7% to $17.10 million from $16.64 million in Q2 FY17.
Stock Performance
At the closing bell, on Tuesday, September 26, 2017, Descartes Systems' stock slipped 1.46%, ending the trading session at $26.95. A total volume of 80.21 thousand shares have exchanged hands, which was higher than the 3-month average volume of 78.09 thousand shares. The Company's stock price rallied 10.68% in the last three months, 19.51% in the past six months, and 27.24% in the previous twelve months. Moreover, the stock surged 25.93% since the start of the year. The stock is trading at a PE ratio of 79.26 and currently has a market cap of $2.07 billion.
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