Descartes Systems' 2Q results may provide spark for moribund stock
Published: 06:25 05 Sep 2023 EDT
Second-quarter results from Descartes Systems (TSX:DSG) are likely to meet analysts’ expectations, paving the way for a return to organic growth.
The Waterloo, Ontario-based logistics software specialist reports after the closing bell on Wednesday, 6 September, and analysts expect 2Q earnings to match expectations. Further ahead, they expect the 3Q baseline to show that organic growth is stabilizing in the mid-single-digit range, after decelerating from highs during the COVID-19 pandemic.
"Stabilizing organic growth may act as a catalyst for the stock, which has lagged software and transportation peers year to date," RBC said.
RBC has forecast Descartes' adjusted EBITDA at US$60 million, an 11% year-on-year increase and in line with consensus.
According to Zacks Investment Research, the consensus forecast for earnings per share (EPS) for the quarter is $0.33. The reported EPS for the same quarter last year was $0.27.
After peaking at around $90 in November 2021, Descartes’ shares have fallen back and traded at $75.51 in Tuesday pre-market trading.
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