BroadSoft Beats Up on Analysts Yet Again

BroadSoft (Nasdaq: BSFT  ) reported earnings on Feb. 27. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
BroadSoft logged revenue of $45.8 million. The 12 analysts polled by S&P Capital IQ expected sales of $45.8 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $40.6 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 $0.47. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. Non-GAAP EPS of $0.47 for Q4 were 24% higher than the prior-year quarter's $0.38 per share. GAAP EPS of $0.17 for Q4 were 11% lower than the prior-year quarter's $0.19 per share.

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 81.7%, 290 basis points worse than the prior-year quarter. Operating margin was 18.4%, 250 basis points worse than the prior-year quarter. Net margin was 10.7%, 280 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $43.9 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $197.3 million. The average EPS estimate is $1.30.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 38 members out of 134 rating the stock outperform, and 96 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give BroadSoft a green thumbs-up, and 37 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BroadSoft is outperform, with an average price target of $41.50.

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 BroadSoft 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 BroadSoft to My Watchlist.