- Descartes Systems reported a revenue of $179.8 million in Q2, seeing a 10% year-over-year (y/y) increase, aligning with estimates.
- Services revenue reached $166.8 million, marking a 14% y/y increase, slightly above the estimate of $164.8 million.
- Earnings per Share (EPS) were 43 cents, compared to 40 cents y/y, but below the estimated 52 cents.
- Adjusted EBITDA was $80.2 million, a 14% y/y increase, slightly surpassing the estimate of $79.9 million.
- The gross margin improved to 77% from 75% y/y, exceeding the estimated 76.2%.
- CEO Edward J. Ryan noted the company performed as planned despite challenging global trade conditions.
- Ryan highlighted ongoing challenges for customers due to uncertainties in costs and cross-border logistics.
- The market sentiment is positive with 9 buy recommendations and 6 hold, and no sell ratings.
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
According to the Smartkarma Smart Scores, Descartes Systems Grp shows a positive long-term outlook. With a strong emphasis on growth and resilience, scoring 4 in both categories, the company demonstrates solid potential for expansion and the ability to withstand market challenges. This indicates that Descartes Systems Grp is well-positioned to capitalize on future opportunities and navigate through economic uncertainties with resilience.
While the company’s value score is rated at 2 and its dividend score at 1, the higher growth and resilience scores suggest that Descartes Systems Grp is focused on driving innovation and maintaining operational strength. With a momentum score of 3, there is also a steady pace of development within the company. Overall, Descartes Systems Grp appears to be a promising player in the supply-chain management sector, leveraging technology to facilitate efficient information sharing and software licensing 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.
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