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American Software (AMSWA) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Zacks Equity Research
·2-min read

For the quarter ended April 2023, American Software (AMSWA) reported revenue of $29.91 million, down 13.7% over the same period last year. EPS came in at $0.12, compared to $0.13 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $30.67 million, representing a surprise of -2.47%. The company delivered an EPS surprise of +33.33%, with the consensus EPS estimate being $0.09.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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Here is how American Software performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenues- Professional Services and other: $7.99 million versus $11.08 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -31.8% change.

  • Revenues- Maintenance: $8.17 million compared to the $8.14 million average estimate based on two analysts. The reported number represents a change of -6.7% year over year.

  • Revenues- License fees: $0.73 million versus the two-analyst average estimate of $0.45 million. The reported number represents a year-over-year change of -76.6%.

  • Revenues- Subscription fees: $13.02 million versus $10.95 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +17.7% change.

  • Gross margin on subscription fees: $8.87 million versus $9.15 million estimated by two analysts on average.

  • Gross margin on maintenance: $6.52 million compared to the $6.62 million average estimate based on two analysts.

  • Gross margin on professional services and other: $2.02 million versus the two-analyst average estimate of $2.38 million.

  • Gross margin on license fees: $0.56 million versus the two-analyst average estimate of $0.26 million.

View all Key Company Metrics for American Software here>>>

Shares of American Software have returned +11.2% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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Zacks Investment Research