Post by
retiredcf on Dec 13, 2021 11:25am
Earnings and Assessment Going Forward
EPS of ($0.05) missed expectations of $0.0867 and revenues of $34.27M beat expectations of $33.98M. Revenues increased by ~12% year-over-year and its SaaS revenue increased by 28%. SaaS subscription bookings were up 50%, and its profitability was negatively impacted by currency fluctuations. Adjusted for currency fluctuations, revenues would have grown by roughly 18% year-over-year. Management noted its three target verticals are outperforming expectations, and the company has won three new major hospital networks. With a greater emphasis for companies on supply chain management, globally, we feel that Tecsys will continue to grow its top line and if it is able to benefit from FX or mitigate its downside exposure to currency fluctuations, then we feel the company will perform quite well.
And later........We like this company and it is trading at a discount to its peers, which includes KXS and DSG. It has reported over 10 consecutive quarters of record revenue, and while it missed its recent earnings results for its EPS estimates, we continue to like the outlook of the company. It operates in the supply chain management space and is actively growing its network of customers and growing its SaaS business. We like the prospects here given the topical global events with supply chains, and we may eventually place it in the growth portfolio.
So said 5iResearch. GLTA