Compuware Goes Red

Compuware (Nasdaq: CPWR  ) reported earnings on May 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), Compuware met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.

Gross margins increased, operating margins shrank, net margins dropped.

Revenue details
Compuware reported revenue of $239.9 million. The four analysts polled by S&P Capital IQ hoped for a top line of $239.7 million on the same basis. GAAP reported sales were 9.8% lower than the prior-year quarter's $266.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.05. The three earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. Non-GAAP EPS of $0.05 for Q4 were 58% lower than the prior-year quarter's $0.12 per share. GAAP EPS were -$0.30 for Q4 against $0.12 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 80.2%, much better than the prior-year quarter. Operating margin was 7.2%, 640 basis points worse than the prior-year quarter. Net margin was -26.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $230.7 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $0.44.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 148 members out of 173 rating the stock outperform, and 25 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Compuware a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Compuware is outperform, with an average price target of $12.60.

Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Compuware makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Add Compuware to My Watchlist.