Q: Thoughts on earning please. Would you accumulate at this level? Thank you!
5i Research Answer:
EPS came in at 98c, just missing estimates of $1.01 but grew from 91c in the year prior. Total revenue declined 8% year-over-year to $1.36B missing estimates of $1.404B. Quarterly enterprise cloud bookings were $180M up 10.3%. Annual recurring revenues of $1.1B was down 5.5%. The company announced a 5% increase in its dividend and commenced a new buyback plan of $300M, double the previous one of $150M maximum. The results were not great but we do like the plans of returning capital to shareholder thorugh the boosted dividend and repurchase plan. OTEX is trying to focus more on organic growth vs. their previous acquisition focus and this could make growth slower going forward.