Tecsys Inc T.TCS

Another Earnings Assessment

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Not so bad. GLTA

EPS of $0.02 missed estimates of $0.0583 and revenues of $43.96M missed estimates of $44.81M. Sales grew by 7%, but its SaaS revenue grew by 27% for the quarter, and its SaaS subscription bookings grew by 108%. Gross margins increased to 47% from 45% in the prior year, and management updated guidance for FY2025 calling for 7% to 9% revenue growth, 30% to 32% SaaS revenue growth and 8% to 9% Adjusted EBITDA margins. It has a solid sales pipeline and management is emphasizing on refining its SaaS software, deepening its healthcare vertical, and expanding its footprint in the European markets. Overall, these were decent results and the stock is reacting positively to the numbers and guidance. (5iResearch)

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Follow up remarks from last week. GLTA TCS is now up 34% this year and 74% over 52 weeks. We still like it; business is good, it has net $34M cash, earnings and revenue continue to grow nicely. EPS is expected to more than double this fiscal year (year end is April). These qualities do not make it cheap--it is 73X earnings. But we like the trend. Insiders own 16% and there has been some buying