Wall Street analysts forecast that Open Text Corp (NASDAQ:OTEX) (TSE:OTC) will announce earnings of $0.64 per share for the current quarter, Zacks reports. Two analysts have made estimates for Open Text’s earnings, with the lowest EPS estimate coming in at $0.62 and the highest estimate coming in at $0.66. Open Text posted earnings of $0.60 per share during the same quarter last year, which would suggest a positive year-over-year growth rate of 6.7%. The company is scheduled to announce its next quarterly earnings results after the market closes on Thursday, October 31st.
According to Zacks, analysts expect that Open Text will report full year earnings of $2.94 per share for the current year, with EPS estimates ranging from $2.92 to $2.95. For the next financial year, analysts forecast that the company will report earnings of $3.10 per share, with EPS estimates ranging from $3.09 to $3.11. Zacks’ EPS averages are an average based on a survey of research analysts that that provide coverage for Open Text.
Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its earnings results on Thursday, August 1st. The software maker reported $0.27 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.37 by ($0.10). Open Text had a return on equity of 7.50% and a net margin of 9.95%. The firm had revenue of $747.20 million during the quarter, compared to analysts’ expectations of $763.51 million. During the same quarter in the prior year, the company posted $0.72 earnings per share. Open Text’s quarterly revenue was down .9% compared to the same quarter last year.
Several equities research analysts have weighed in on the company. ValuEngine cut Open Text from a “buy” rating to a “hold” rating in a report on Friday, September 20th. Benchmark reaffirmed a “buy” rating and issued a $48.00 price objective (up previously from $42.00) on shares of Open Text in a research note on Thursday, July 11th. BidaskClub raised shares of Open Text from a “hold” rating to a “buy” rating in a research note on Friday, September 27th. Zacks Investment Research raised shares of Open Text from a “sell” rating to a “hold” rating in a research note on Thursday, October 3rd. Finally, TD Securities raised their price objective on shares of Open Text from $45.00 to $48.00 and gave the stock a “buy” rating in a research note on Friday, August 2nd. One analyst has rated the stock with a sell rating, two have given a hold rating and eight have assigned a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $47.89.
Hedge funds and other institutional investors have recently made changes to their positions in the business. Allianz Asset Management GmbH raised its stake in shares of Open Text by 7.1% during the second quarter. Allianz Asset Management GmbH now owns 500,405 shares of the software maker’s stock worth $20,694,000 after buying an additional 33,094 shares during the last quarter. Bank of Nova Scotia Trust Co. raised its position in Open Text by 0.8% during the second quarter. Bank of Nova Scotia Trust Co. now owns 133,481 shares of the software maker’s stock worth $5,499,000 after acquiring an additional 994 shares in the last quarter. JPMorgan Chase & Co. raised its position in Open Text by 24.8% during the second quarter. JPMorgan Chase & Co. now owns 973,317 shares of the software maker’s stock worth $40,090,000 after acquiring an additional 193,689 shares in the last quarter. SG Americas Securities LLC bought a new stake in Open Text during the second quarter worth $206,000. Finally, Global Endowment Management LP bought a new stake in Open Text during the second quarter worth $407,000. 64.55% of the stock is owned by institutional investors.
Shares of OTEX stock traded up $0.45 during mid-day trading on Friday, hitting $40.74. The stock had a trading volume of 26,499 shares, compared to its average volume of 448,289. Open Text has a 12-month low of $30.99 and a 12-month high of $44.49. The firm has a market capitalization of $10.88 billion, a P/E ratio of 38.43 and a beta of 0.56. The firm’s 50-day moving average is $40.22 and its two-hundred day moving average is $40.18. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.54 and a quick ratio of 1.54.
The company also recently declared a quarterly dividend, which was paid on Friday, September 20th. Shareholders of record on Friday, August 30th were given a $0.175 dividend. The ex-dividend date was Thursday, August 29th. This is a positive change from Open Text’s previous quarterly dividend of $0.17. This represents a $0.70 dividend on an annualized basis and a yield of 1.72%. Open Text’s payout ratio is 66.04%.
Open Text Company Profile
Open Text Corporation provides a suite of software products and services. The company offers content services; digital process automation, which enables organizations to transform into digital and data-driven businesses through automation; and discovery suite that provides forensics and unstructured data analytics for searching, collecting, and investigating enterprise data to manage legal obligations and risk.
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