- Descartes Systems reported $168.7 million in revenue for the first quarter, representing a 12% year-over-year increase, just slightly below the estimated $169.9 million.
- Services revenue grew by 14% year-over-year, reaching $156.6 million, narrowly missing the estimate of $157.1 million.
- The company reported earnings per share (EPS) of 41c, up from 40c year-over-year, but lower than the expected 50c.
- Adjusted EBITDA met estimates at $75.1 million, showcasing a 12% increase year-over-year.
- The gross margin was 76%, slightly below last year’s 77% and falling short of the 76.5% estimate.
- The company’s stock analysts’ ratings include 9 buys, 4 holds, and 1 sell.
A look at Descartes Systems Grp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Descartes Systems Group Inc. is positioned for solid long-term growth based on the Smartkarma Smart Scores analysis. With a strong score of 4 in Growth and Resilience, the company is expected to expand steadily and maintain its stability in the face of market challenges. This indicates a positive outlook for Descartes Systems, showcasing its potential for sustained development in the coming years.
While the company shows strength in growth and resilience, there is room for improvement in other areas according to the Smartkarma Smart Scores. With a Value score of 2 and a Dividend score of 1, Descartes Systems Group Inc. may need to focus on enhancing its value proposition and dividend payouts to attract more investors and strengthen its overall financial performance. Despite these considerations, the company’s momentum score of 3 reflects a moderate upward trend, suggesting a gradual improvement in market sentiment towards Descartes Systems Group Inc.
### The Descartes Systems Group Inc. provides inter-enterprise software for the execution of supply-chain management, especially for delivery-intensive companies. The Company’s products allow users to share and process information via the Internet. Descartes licenses software to customers worldwide. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
