Here's What Key Metrics Tell Us About American Software (AMSWA) Q2 Earnings
American Software (AMSWA) reported $25.69 million in revenue for the quarter ended October 2023, representing a year-over-year decline of 18.3%. EPS of $0.08 for the same period compares to $0.10 a year ago.
The reported revenue represents a surprise of -4.12% over the Zacks Consensus Estimate of $26.8 million. With the consensus EPS estimate being $0.08, the company has not delivered EPS surprise.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how American Software performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Professional services and other: $4 million compared to the $7.55 million average estimate based on two analysts. The reported number represents a change of -58.3% year over year.
Revenues- Maintenance: $8.10 million versus $7.82 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -8.3% change.
Revenues- License fees: $0.23 million versus the two-analyst average estimate of $0.30 million. The reported number represents a year-over-year change of -66.7%.
Revenues- Subscription fees: $13.36 million versus $14.03 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +8.4% change.
Gross margin on subscription fees: $8.75 million versus $9.80 million estimated by two analysts on average.
Gross margin on maintenance: $6.37 million versus the two-analyst average estimate of $6.37 million.
Gross margin on professional services and other: $1.15 million versus the two-analyst average estimate of $2.08 million.
Gross margin on license fees: $0.32 million versus the two-analyst average estimate of $0.21 million.
View all Key Company Metrics for American Software here>>>
Shares of American Software have returned -0.3% over the past month versus the Zacks S&P 500 composite's +4.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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