- Open Text’s adjusted earnings per share (EPS) for the second quarter were $1.11, surpassing estimates of 93 cents but lower than last year’s $1.24.
- The company reported revenues of $1.33 billion, which is a 13% decrease compared to the previous year, but slightly better than the estimated $1.32 billion.
- Cloud revenue was $462 million, which is a 2.6% increase from the previous year and exceeded the estimated $458.8 million.
- License revenue amounted to $188.9 million, marking a 35% decline year-over-year and falling short of the $193.9 million estimate.
- The adjusted gross margin was 77.2%, down from last year’s 78.6%, yet above the predicted 76.6%.
- Analyst recommendations for Open Text include 4 buys, 9 holds, and 0 sells.
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A look at Open Text Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
Open Text Corp, a provider of intranet, extranet, and corporate portal solutions globally, shows a promising long-term outlook according to Smartkarma Smart Scores. With a solid Growth score of 4, the company is positioned for expansion and development in the coming years. This indicates a positive trajectory for Open Text Corp in terms of advancing its market position and innovating its products to meet evolving customer needs.
While the company’s Resilience score is lower at 2, suggesting some vulnerability to market fluctuations, Open Text Corp still maintains an overall balanced performance with Value, Dividend, and Momentum scores all at a moderate level. This indicates that the company is primed for steady growth and is likely to continue providing value to its shareholders over the long term.
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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