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Descartes Set to Report Q2 Earnings: Here's What You Should Know
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Descartes Systems (DSGX - Free Report) is slated to report second-quarter fiscal 2025 results on Sept. 4, after the closing bell.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $159 million, which suggests an increase of 10.8% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at 43 cents, indicating a year-over-year rise of 34.4%.
The company’s earnings missed the Zacks Consensus Estimate in three of the last four quarters while surpassing once. It has a trailing four-quarter earnings surprise of 3.1%, on average.
Assuming foreign exchange rates of 73 cents to the Canadian dollar, $1.07 to the euro currency and $1.24 to the pound, DSGX forecasts baseline revenues and operating expenses for the second quarter of fiscal 2025 to be roughly $136 million and $84 million, respectively.
Factors Driving DSGX’s Q2 Performance
Descartes’ performance in the fiscal second quarter is likely to have benefited from the healthy uptake of its innovative solutions, tailored specifically for logistics operators to effectively manage the dynamics of the supply chain. Steady traction in real-time visibility, global trade intelligence, routing and scheduling solutions and e-commerce business acts as a key growth driver.
In June 2024, a premium third-party logistics company – Yellow Diamond Logistics – adopted Descartes Aljex transportation management and Descartes MacroPoint solutions to streamline its operations and enhance artificial intelligence-powered capacity sourcing, which is expected to provide a high rate of on-time delivery performance.
In the same month, U.K.-based merchant – Scott Parnell – leveraged its electronic proof of delivery (ePOD) software solution for the supply and distribution of materials to construction, infrastructure and rail sectors across the nation. ePOD is part of DSGX’s routing, mobile and telematics solutions portfolio, which can be smoothly integrated with Enterprise Resource Planning systems. Also, in July 2024, British integrated property services company – James Frew – adopted Descartes’ customer engagement solution to increase property access rates for the timely completion of customer appointments.
The Descartes Systems Group Inc. Price and EPS Surprise
A significant portion of Descartes' growth strategy involves strategic acquisitions, which have bolstered its service offerings and market reach. Synergies arising from the acquisition of OCR and Thyme ASD in the fiscal first quarter with GroundCloud and Localz acquisition in 2024 led to 11% year-over-year growth in total revenues during the quarter. In June 2024, it acquired England-based BoxTop Technologies Limited for $13 million (or £10.25 million) in an all-cash transaction.
The acquisition will integrate BoxTop solutions with its Global Logistics Network platform. The initiative is likely to broaden the network’s reach and capabilities, providing customers with even greater efficiency and visibility across their supply chains.
However, uncertainty prevailing over global macroeconomic conditions, geopolitical instability and volatile supply-chain issues remain headwinds.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for DSGX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.
DSGX has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
FedEx Corporation (FDX - Free Report) has an Earnings ESP of +1.56% and currently carries a Zacks Rank #3. FDX is scheduled to report quarterly earnings on Sept., 19. The Zacks Consensus Estimate for FDX’s to-be-reported quarter’s earnings and revenues is pegged at $4.92 per share and $22.2 billion, respectively. Shares of FDX have soared 14.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here
DICK’S Sporting Goods Inc. (DKS - Free Report) has an Earnings ESP of +3.05% and currently carries a Zacks Rank #2. DKS is scheduled to report quarterly earnings on Sept., 4. The Zacks Consensus Estimate for DKS’ to-be-reported quarter’s earnings and revenues is pegged at $3.77 per share and $3.4 billion, respectively. Shares of FDX have surged 103.1% in the past year.
Casey's General Stores, Inc. (CASY - Free Report) presently has an Earnings ESP of +0.21% and a Zacks Rank #3. CASY is slated to release quarterly numbers on Sept. 4. The Zacks Consensus Estimate for BURL’s to-be-reported quarter’s earnings and revenues is pegged at $4.50 per share and $4.11 billion, respectively. Shares of CASY have gained 49% in the past year.
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Descartes Set to Report Q2 Earnings: Here's What You Should Know
Descartes Systems (DSGX - Free Report) is slated to report second-quarter fiscal 2025 results on Sept. 4, after the closing bell.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $159 million, which suggests an increase of 10.8% from the year-ago quarter’s reported figure. The consensus mark for earnings per share (EPS) is pegged at 43 cents, indicating a year-over-year rise of 34.4%.
The company’s earnings missed the Zacks Consensus Estimate in three of the last four quarters while surpassing once. It has a trailing four-quarter earnings surprise of 3.1%, on average.
Assuming foreign exchange rates of 73 cents to the Canadian dollar, $1.07 to the euro currency and $1.24 to the pound, DSGX forecasts baseline revenues and operating expenses for the second quarter of fiscal 2025 to be roughly $136 million and $84 million, respectively.
Factors Driving DSGX’s Q2 Performance
Descartes’ performance in the fiscal second quarter is likely to have benefited from the healthy uptake of its innovative solutions, tailored specifically for logistics operators to effectively manage the dynamics of the supply chain. Steady traction in real-time visibility, global trade intelligence, routing and scheduling solutions and e-commerce business acts as a key growth driver.
In June 2024, a premium third-party logistics company – Yellow Diamond Logistics – adopted Descartes Aljex transportation management and Descartes MacroPoint solutions to streamline its operations and enhance artificial intelligence-powered capacity sourcing, which is expected to provide a high rate of on-time delivery performance.
In the same month, U.K.-based merchant – Scott Parnell – leveraged its electronic proof of delivery (ePOD) software solution for the supply and distribution of materials to construction, infrastructure and rail sectors across the nation. ePOD is part of DSGX’s routing, mobile and telematics solutions portfolio, which can be smoothly integrated with Enterprise Resource Planning systems. Also, in July 2024, British integrated property services company – James Frew – adopted Descartes’ customer engagement solution to increase property access rates for the timely completion of customer appointments.
The Descartes Systems Group Inc. Price and EPS Surprise
The Descartes Systems Group Inc. price-eps-surprise | The Descartes Systems Group Inc. Quote
A significant portion of Descartes' growth strategy involves strategic acquisitions, which have bolstered its service offerings and market reach. Synergies arising from the acquisition of OCR and Thyme ASD in the fiscal first quarter with GroundCloud and Localz acquisition in 2024 led to 11% year-over-year growth in total revenues during the quarter. In June 2024, it acquired England-based BoxTop Technologies Limited for $13 million (or £10.25 million) in an all-cash transaction.
The acquisition will integrate BoxTop solutions with its Global Logistics Network platform. The initiative is likely to broaden the network’s reach and capabilities, providing customers with even greater efficiency and visibility across their supply chains.
However, uncertainty prevailing over global macroeconomic conditions, geopolitical instability and volatile supply-chain issues remain headwinds.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for DSGX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here.
DSGX has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
FedEx Corporation (FDX - Free Report) has an Earnings ESP of +1.56% and currently carries a Zacks Rank #3. FDX is scheduled to report quarterly earnings on Sept., 19. The Zacks Consensus Estimate for FDX’s to-be-reported quarter’s earnings and revenues is pegged at $4.92 per share and $22.2 billion, respectively. Shares of FDX have soared 14.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here
DICK’S Sporting Goods Inc. (DKS - Free Report) has an Earnings ESP of +3.05% and currently carries a Zacks Rank #2. DKS is scheduled to report quarterly earnings on Sept., 4. The Zacks Consensus Estimate for DKS’ to-be-reported quarter’s earnings and revenues is pegged at $3.77 per share and $3.4 billion, respectively. Shares of FDX have surged 103.1% in the past year.
Casey's General Stores, Inc. (CASY - Free Report) presently has an Earnings ESP of +0.21% and a Zacks Rank #3. CASY is slated to release quarterly numbers on Sept. 4. The Zacks Consensus Estimate for BURL’s to-be-reported quarter’s earnings and revenues is pegged at $4.50 per share and $4.11 billion, respectively. Shares of CASY have gained 49% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.