U.S. Markets closed

Earnings Review and Free Research Report: Descartes Systems' Diluted EPS Increased 12.5%

Research Desk Line-up: eGain Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 27, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on The Descartes Systems Group Inc. (NASDAQ: DSGX) ("Descartes"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=DSGX, following the Company's release of its financial results on September 06, 2017, for the second quarter of the fiscal year 2018. The Company's revenue increased 13.4% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Business Software & Services industry. Pro-TD has currently selected eGain Corporation (NASDAQ: EGAN) for due-diligence and potential coverage as the Company announced on September 06, 2017, its financial results for Q4 FY17 and full year which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on eGain when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DSGX; also brushing on EGAN. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=DSGX

http://protraderdaily.com/optin/?symbol=EGAN

Earnings Reviewed

For the three months ended July 31, 2017, Descartes' revenue increased 13.4% to $57.29 million from $50.52 million in Q2 FY17. The revenue figures surpassed analysts' expectations of $55.7 million.

During Q2 FY18, Descartes' gross profit increased 14.2% to $41.95 million from $36.73 million in Q2 FY17. For the reported quarter, the Company's gross margin was at par with the 73% of revenue in Q2 FY17.

For the reported quarter, the Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 15.1% to $19.8 million from $17.2 million in Q2 FY17. During Q2 FY18, Descartes' adjusted EBITDA margin increased 100 basis points to 35% of revenue from 34% of revenue in Q2 FY17.

For the reported quarter, Descartes' S&M expenses increased 20% to $7.61 million from $6.34 million in Q2 FY17. During Q2 FY18, the Company's R&D expenses increased 14.1% to $10.16 million from $8.90 million in Q2 FY17. For the reported quarter, the Company's G&A expenses increased 3.6% to $6.18 million from $5.96 million in Q2 FY17.

During Q2 FY18, Descartes' operating income increased 29.7% to $9.33 million from $7.19 million in Q2 FY17. For the reported quarter, the Company's operating margin increased 200 basis points to 16.2% of revenue from 14.2% of revenue in Q2 FY17.

During Q2 FY18, Descartes' net income increased 23.8% to $7.16 million on a y-o-y basis from $5.78 million in Q2 FY17. During Q2 FY18, Descartes' diluted earnings per share (EPS) increased 12.5% to $0.09 on a y-o-y basis from $0.08 in Q2 FY17. The diluted EPS was below analysts' expectations of $0.10.

On May 18, 2017, Descartes acquired Z-Firm LLC, a US-based provider of e-commerce multi-carrier parcel shipping solutions for small- to medium-sized businesses (SMBs).

On June 01, 2017, the Company acquired all the assets of PCSTrac, Inc., including certain related assets of Progressive Computer Services Inc. dba PCS Technologies.

On August 14, 2017, Descartes acquired MacroPoint LLC, an electronic transportation network providing location-based truck tracking and predictive freight capacity data content.

Segment Details

Services - For the reported quarter, the Company's Services segment's revenue increased 13.3% to $55.1 million from $48.6 million in Q2 FY17. For the reported quarter, the segment's gross profit increased 14.5% to $40.2 million from $35.1 million in Q2 FY17. During Q2 FY18, the segment's gross margin increased 70 basis points to 72.9% of revenue from 72.2% of revenue in Q2 FY17.

License - During Q2 FY18, Descartes' License segment's revenue increased 15.7% to $2.2 million from $1.9 million in Q2 FY17. For the reported quarter, the segment's gross profit increased 12.5% to $1.8 million from $1.6 million in Q2 FY17. During Q2 FY18, the segment's gross margin decreased 240 basis points to 81.8% of revenue from 84.2% of revenue in Q2 FY17.

Balance Sheet

As on July 31, 2017, Descartes' cash increased 129.4% to $87.53 million from $38.14 million in Q4 FY17.

During Q2 FY18, the Company's net accounts receivable increased 6% to $30.87 million from $29.11 million in Q4 FY17.

During Q2 FY18, Descartes' inventories increased 11.9% to $187,000 from $167,000 in Q4 FY17.

For the reported quarter, the Company's accounts payable increased 87.6% to $8.78 million from $4.68 million in Q4 FY17.

During Q2 FY18, Descartes' cash provided by operating activities increased 2.7% to $17.10 million from $16.64 million in Q2 FY17.

Stock Performance

At the closing bell, on Tuesday, September 26, 2017, Descartes Systems' stock slipped 1.46%, ending the trading session at $26.95. A total volume of 80.21 thousand shares have exchanged hands, which was higher than the 3-month average volume of 78.09 thousand shares. The Company's stock price rallied 10.68% in the last three months, 19.51% in the past six months, and 27.24% in the previous twelve months. Moreover, the stock surged 25.93% since the start of the year. The stock is trading at a PE ratio of 79.26 and currently has a market cap of $2.07 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily