Open Text Earnings: Here’s Why Investors are Not Happy Now
Open Text Corp. (NASDAQ:OTEX) delivered a profit and beat Wall Street’s expectations, BUT 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 down 5.0%.
Open Text Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 22.22% to $1.43 in the quarter versus EPS of $1.17 in the year-earlier quarter.
Revenue: Rose 13.64% to $347.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Open Text Corp. reported adjusted EPS income of $1.43 per share. By that measure, the company beat the mean analyst estimate of $1.42. It missed the average revenue estimate of $361.62 million.
Quoting Management: “We are pleased with our performance this year, delivering historical records in revenue, operating cash flow and non-GAAP earnings while making the strategic acquisition of Easylink and introducing a quarterly dividend program,” said OpenText CEO Mark J. Barrenechea . “With our sales organization expanded and fully trained, and our leadership position established as a premiere EIM provider, we demonstrated 6% organic license growth in the second half of FY2013 over the same period last year.”
Key Stats (on next page)…