DSGX Earnings Prediction
The chart below shows how DSGX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DSGX sees a -0.46% change in stock price 10 days leading up to the earnings, and a +1.41% change 10 days following the report. On the earnings day itself, the stock moves by +0.25%. This data can give you a slight idea of what to expect for the next quarter's release.
DSGX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
168.76M
16.63%
3.26%
Gross Margin
64.05%
-2.57%
-0.74%
Operating Margin
27.60%
18.51%
1.96%
Net Margin
21.66%
17.85%
2.07%
EPS
0.42
35.48%
5.00%
No Data Available
DSGX Earnings Analysis
Descartes Systems Group Inc Corporation (DSGX.O) Earnings Conference Call
Positive
Revenue and Services Growth: Total revenues were up 17% from a year ago with services up 15% from a year ago.
Net Income and EBITDA Growth: Net income was up 38% from a year ago, with adjusted EBITDA up 14% from a year ago.
Cash Generation Performance: We generated over $60 million in cash from operations in Q3 or 83% of adjusted EBITDA, in line with how we would expect the business to perform.
Strong Cash Position: We ended the quarter with more than $180 million in cash, and we were debt free with an undrawn $350 million line of credit.
Cash Flow Conversion Outlook: We expect to continue to see strong cash flow conversion and generally expect cash flow from operations to be between 80% and 90% of our adjusted EBITDA in the quarters ahead.
Negative
Geopolitical Impact on Performance: Operating performance, financial results and conditions were negatively impacted by geopolitical, trade and economic uncertainty.
Gross Margin Decline: Gross margins decreased from 76.3% in the third quarter last year to 74.4% this quarter, primarily due to low-margin hardware revenues.
Operating Expenses Surge: Operating expenses increased by approximately 14% in the third quarter over the same period last year, heavily related to the cost impact of five acquisitions completed this year.
EBITDA Margin Decline: Adjusted EBITDA margins were down slightly from Q3 last year due to the impact of low-margin hardware revenues recorded in the quarter.
Cash Balance Decline: Cash balances totaled $181 million at the end of October, down from approximately $253 million from the end of Q2.
DSGX FAQs
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DSGX Earning Call Sentiment
The Descartes Systems Group Inc. (DSGX) Q3 2025 Earnings Call Transcript
1.0x
00:00
00:00
DSGX.O
-3.11%Positive
The earnings call presents a strong financial performance with a 17% revenue increase and a 14% rise in adjusted EBITDA. Despite a slight decline in gross margin, the optimistic guidance and strategic acquisitions like Sellercloud and MyCarrierPortal are likely to bolster growth. The Q&A reveals a positive sentiment towards the company's market strategy and potential expansion. The company's solid cash position and undrawn credit line further support a positive outlook. Overall, the stock price is likely to see a positive movement in the next two weeks.
