Q: Can I please have your thoughts on Descartes recently announced earnings, your overall thoughts on the company and any comments you have. I have owned this security for some time and am very happy with its past performance.
5i Research Answer:
DSG reported revenue of $148.2 mln vs $143.9 mln expected. EPS of $0.37 met estimates. Margins seem to be getting back to historical levels and growth is picking up a bit as well. Revenues were up 18% over the prior year. DSG ended the quarter with $321 mln in cash. Overall it looked like another solid qurter for the company and markets seem to agree with shares up after the release. We continue to like DSG as it operates in an industry with a lot of whitespace to grow into with a service that tends to be sticky, leading to reliable revenues over time.