A Glimpse of Descartes Systems Gr's Earnings Potential

Descartes Systems Gr (NASDAQ:DSGX) is preparing to release its quarterly earnings on Wednesday, 2025-12-03. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Descartes Systems Gr to report an earnings per share (EPS) of $0.53.

Anticipation surrounds Descartes Systems Gr's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

During the last quarter, the company reported an EPS missed by $0.08, leading to a 6.74% increase in the share price on the subsequent day.

Here's a look at Descartes Systems Gr's past performance and the resulting price change:

Market Performance of Descartes Systems Gr's Stock

Shares of Descartes Systems Gr were trading at $81.96 as of December 01. Over the last 52-week period, shares are down 31.82%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Insights on Descartes Systems Gr

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Descartes Systems Gr.

The consensus rating for Descartes Systems Gr is Buy, based on 4 analyst ratings. With an average one-year price target of $117.0, there's a potential 42.75% upside.

Analyzing Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Elastic, TeraWulf and D-Wave Quantum, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Elastic, with an average 1-year price target of $104.79, suggesting a potential 27.86% upside.
• Analysts currently favor an Buy trajectory for TeraWulf, with an average 1-year price target of $20.82, suggesting a potential 74.6% downside.
• Analysts currently favor an Buy trajectory for D-Wave Quantum, with an average 1-year price target of $37.8, suggesting a potential 53.88% downside.

Summary of Peers Analysis

Within the peer analysis summary, vital metrics for Elastic, TeraWulf and D-Wave Quantum are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Descartes Systems Gr ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity.

All You Need to Know About Descartes Systems Gr

Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. Its core product is the Global Logistics Network, which is best understood as transaction-driven. Descartes charges clients to send/receive messages, data, and documents on the GLN. Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.

Understanding the Numbers: Descartes Systems Gr's Finances

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Positive Revenue Trend: Examining Descartes Systems Gr's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.03% as of 31 July, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Descartes Systems Gr's net margin excels beyond industry benchmarks, reaching 21.14%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.58%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.19%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.01, Descartes Systems Gr adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Descartes Systems Gr visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.