Compuware Earnings: Revenue FALLS After Four Straight Increases, Net Income Drops

S&P 500 (NYSE:SPY) component Compuware Corporation (NASDAQ:CPWR) reported its results for the first quarter. Compuware provides software products and professional services that improve the performance of information technology organizations.

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Compuware Corporation Earnings Cheat Sheet

Results: Net income for Compuware Corporation fell to $10.5 million (5 cents per share) vs. $17 million (8 cents per share) a year earlier. This is a decline of 38.2% from the year-earlier quarter.

Revenue: Fell 1.6% to $226.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Compuware Corporation beat the mean analyst estimate of 4 cents per share. It fell short of the average revenue estimate of $236.3 million.

Quoting Management: “Driven by technology mega-trends like mobile, cloud and big data analytics, Compuware’s growth engines continue to rapidly increase revenues,” said Compuware CEO Bob Paul. “Our Compuware APM and Covisint solutions in particular stand squarely in leadership positions for this technology revolution and have led the way to a solid Q1.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the fourth quarter of the last fiscal year, net income fell 22.1% while the figure fell 36.5% in the third quarter of the last fiscal year and 12.7% in the second quarter of the last fiscal year.

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 15.4%.

The company beat estimates last quarter after meeting expectations in the fourth quarter of the last fiscal year with net income of 12 cents per share.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the second quarter is 9 cents per share, a drop from 11 cents. Over the past sixty days, the average estimate for the fiscal year has reached 46 cents per share, a decline from 50 cents.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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