Exa Earnings: Here’s Why Investors are Happy Now
Exa Corp (NASDAQ:EXA) had a loss and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 6.05%.
Exa Corp Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.04 in the quarter versus EPS of $0.10 in the year-earlier quarter.
Revenue: Rose 7.54% to $12.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Exa Corp reported adjusted EPS loss of $0.04 per share. By that measure, the company missed the mean analyst estimate of $-0.04. It missed the average revenue estimate of $13.08 million.
Quoting Management: “The return to customer spending that we started to see at the beginning of the year continued in the second quarter,” said Stephen Remondi, President and Chief Executive Officer of Exa. “This was most apparent in second quarter project revenue, which increased 23% from a year ago. We continue to see strong momentum from customers in the passenger car market, though this is being more than offset by continued delays at customers in the truck and off-highway markets who are impacted by softer macro trends. We believe the investments that we are making in our long-term growth are having a positive impact on our business, but with a mixed customer environment we are tempering our growth expectations over the near-term. As such we are moderating our full year revenue expectations, though we continue to anticipate double-digit revenue growth for the full year fiscal 2014, as compared to fiscal 2013.”
Key Stats (on next page)…