The Descartes Systems Group (NASDAQ:DSGX) Shares Up 7.3% on Better-Than-Expected Earnings

Key Points

• The Descartes Systems Group beat expectations with Q EPS $0.52 vs $0.50 est and revenue $192.37M vs $188.09M (revenue +15.1% YoY, 22.1% net margin), and the stock jumped 7.3% to about $74 intraday.
• Analysts are broadly positive: MarketBeat shows a consensus rating of Buy with a $112.60 consensus price target, and several recent upgrades (TD, Raymond James, RBC) despite BMO lowering its target to $95.
• The company has a market cap of $6.37B, a P/E of 41.98 and roughly 77.7% institutional ownership; the share price is near its 50‑day average (~$74.84) but below its 200‑day average (~$86.47).

The Descartes Systems Group Inc. (NASDAQ:DSGX - Get Free Report) TSE: DSG shares traded up 7.3% during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $73.80 and last traded at $74.14. 402,959 shares changed hands during mid-day trading, a decline of 46% from the average session volume of 745,486 shares. The stock had previously closed at $69.10.

The technology company reported $0.52 EPS for the quarter, beating analysts' consensus estimates of $0.50 by $0.02. The business had revenue of $192.37 million for the quarter, compared to analyst estimates of $188.09 million. The Descartes Systems Group had a net margin of 22.10% and a return on equity of 10.57%. The business's revenue for the quarter was up 15.1% on a year-over-year basis. During the same quarter last year, the business earned $0.43 earnings per share.

Analyst Ratings Changes

Several equities analysts have recently issued reports on DSGX shares. TD Securities raised shares of The Descartes Systems Group to a "strong-buy" rating in a research note on Friday, December 5th. Raymond James Financial upgraded The Descartes Systems Group from a "market perform" rating to an "outperform" rating and set a $118.00 price objective for the company in a research report on Thursday, December 4th. Royal Bank Of Canada set a $126.00 target price on The Descartes Systems Group and gave the stock an "outperform" rating in a research report on Monday, December 1st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of The Descartes Systems Group in a report on Monday, December 29th. Finally, BMO Capital Markets decreased their price target on The Descartes Systems Group from $113.00 to $95.00 and set a "market perform" rating for the company in a research report on Thursday, December 4th. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus price target of $112.60.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Goldman Sachs Group Inc. increased its holdings in The Descartes Systems Group by 35.1% in the first quarter. Goldman Sachs Group Inc. now owns 377,140 shares of the technology company's stock worth $38,027,000 after buying an additional 98,054 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of The Descartes Systems Group by 1.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 54,618 shares of the technology company's stock worth $5,507,000 after purchasing an additional 660 shares during the last quarter. Bank of New York Mellon Corp increased its stake in shares of The Descartes Systems Group by 0.7% during the 2nd quarter. Bank of New York Mellon Corp now owns 129,175 shares of the technology company's stock worth $13,130,000 after purchasing an additional 840 shares during the last quarter. Metis Global Partners LLC raised its holdings in shares of The Descartes Systems Group by 11.8% during the 2nd quarter. Metis Global Partners LLC now owns 3,267 shares of the technology company's stock valued at $332,000 after purchasing an additional 345 shares in the last quarter. Finally, Aviva PLC boosted its holdings in The Descartes Systems Group by 8.5% in the second quarter. Aviva PLC now owns 60,356 shares of the technology company's stock worth $6,130,000 after purchasing an additional 4,709 shares in the last quarter. 77.73% of the stock is owned by institutional investors and hedge funds.

The Descartes Systems Group Price Performance

The stock has a market capitalization of $6.37 billion, a P/E ratio of 41.98 and a beta of 0.77. The stock's fifty day moving average is $74.84 and its 200-day moving average is $86.47.

The Descartes Systems Group Company Profile

The Descartes Systems Group Inc NASDAQ: DSGX is a global provider of cloud-based logistics and supply chain management solutions. The company's software-as-a-service platform connects and optimizes the flow of goods, information and payments across the global supply chain, helping businesses coordinate transportation, customs clearance, routing, scheduling and fleet management. Descartes' modular applications serve shippers, carriers, third-party logistics providers and regulatory authorities by enabling real-time visibility, compliance and execution across complex trade networks.

Headquartered in Waterloo, Ontario, Descartes was founded in 1981 and has grown through a combination of organic development and strategic acquisitions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.