Canadian cloud-based SaaS provider Descartes Systems Q2 revenue beats estimates
Overview
Descartes Systems Group fiscal Q2 rev grows 10% yr/yr, beating analyst expectations, per LSEG data
Adjusted EBITDA for fiscal Q2 beats estimates, per LSEG data
Outlook
Company notes challenging market conditions impacting customer pricing decisions
Descartes highlights reliance on its Global Logistics Network amid trade uncertainties
Result Drivers
GLOBAL LOGISTICS NETWORK - Descartes attributes revenue growth to reliance on its Global Logistics Network by shippers, carriers, and logistics services providers amid challenging global trade conditions
SERVICES REVENUES - Services revenues, comprising 93% of total revenues, increased by 14% from Q2FY25, indicating strong demand for Descartes' logistics solutions
CASH FLOW IMPACT - Cash provided by operating activities rose 82% from Q2FY25, despite a $5 mln payment for personnel departures
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $179.80 mln | $175.80 mln (7 Analysts) |
Q2 EPS | $0.43 | ||
Q2 Net Income | $38 mln | ||
Q2 Adjusted EBITDA | Beat | $80.20 mln | $79.10 mln (8 Analysts) |
Q2 Gross Margin | 77.0% | ||
Q2 Operating Income | $48.20 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 56 three months ago
Press Release:
