CPWR's Preliminary 3Q Results - Analyst Blog
18 Gennaio 2012 - 1:30PM
Zacks
Compuware Corporation (CPWR) has recently provided a peek at its
December 2011 quarter financial results.
Segmental growth seemed quite a
mixed bag for the December quarter.
APM revenues went through a
convalescing period, thereby increasing 16% year over year and 15%
quarterly. SAAS revenues, Covisint revenues and Changepoint
revenues were quite encouraging, growing by 9%, 29% and 32% year
over year, respectively. License fees also recorded a growth of 16%
year over year.
On the other hand, Mainframe
Solutions and Uniface revenues declined 10% and 3% year over year,
respectively.
The overall picture was quite
disappointing as total revenues showed an increase of only 2% year
over year and earnings came in at 10 cents per share falling short
of the Zacks Consensus Estimate of 12 cents per share. The
EPS also failed to meet the previously projected outlook of $0.11
to $0.13 per share declared during the second quarter results
earlier this year.
Management shed light on its fiscal
2012 guidance, thereby lowering its EPS estimates from $0.47 -
$0.50 per share to $0.40 - $0.42 per share. Revenues are now
expected to show an overall growth of 8% to 10%. The APM and
Covisint segments are the main flag bearers in the eyes of the
company to yield favourable results in future.
It would be intriguing to see how
Compuware battles the ominous pressures of its rivals with its
currently grim scenario. These rivals consist of big players such
as BMC Software Inc. (BMC), CA
Technologies (CA) and International Business
Machines Corp. (IBM) who as of now seem to be at a more
formidable position in the application software industry.
The Zacks Consensus Estimates for
fiscal years 2012 and 2013 stand at 48 cents per share and 60 cents
per share, respectively.
We currently have a long-term
recommendation of Neutral for the company’s stock. In the short
run, we have a Zacks #4 Rank for the stock, which translates into a
short-term rating of Sell.
BMC SOFTWARE (BMC): Free Stock Analysis Report
CA INC (CA): Free Stock Analysis Report
COMPUWARE CORP (CPWR): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
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