UPDATE: BMO Capital Markets Reiterates on Open Text Following Mixed Q1/14 Results

In a report published Thursday, BMO Capital Markets analyst Thanos Moschopoulos reiterated a Market Perform rating on Open Text OTEX, but lowered the price target from $82.00 to $74.00. In the report, BMO Capital Markets noted, “Open Text reported Q1/14 results. Revenues were $324.5 million, below the consensus of $333.9 million, with the shortfall due to soft licenses and professional service revenue. Licenses revenues were $55.3 million (we believe the consensus was $60-61 million). Both total revenues and license revenues were roughly flat y/y on a reported basis, and (by our math) down 3% y/y on an organic constant currency basis. Management blamed the shortfall squarely on the macro uncertainty related to the government shutdown. Despite the revenue miss, adj. EPS of $1.37 (or $1.34 excluding a one-time item) exceeded the consensus of $1.30, on higher margins and lower opex.” Open Text closed on Wednesday at $75.10.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetAnalyst RatingsBMO Capital MarketsThanos Moschopoulos
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!