Descartes Systems Sees 16.2% EPS Growth Forecast and 20% Cash Flow Increase
Descartes Systems reported historical EPS growth of 21.5% and projected 16.2% EPS increase this year versus a 13.5% industry average. Its year-over-year operating cash flow rose 20% (vs. 9.4% peer average) and current-year earnings estimates have climbed 9.4% in the past month.
1. Earnings Growth
Descartes Systems has a historical EPS growth rate of 21.5% and analysts project EPS growth of 16.2% this year compared with a 13.5% industry average.
2. Cash Flow Growth
Year-over-year operating cash flow rose 20%, outperforming the industry average of 9.4%, with a 3- to 5-year annualized cash flow growth of 17.2% versus 11.4% for peers.
3. Estimate Revisions
Current-year earnings estimates have been revised upward by 9.4% over the past month, reflecting increasing analyst confidence in the company's profit outlook.
4. Outlook
With a Zacks Rank #2 (Buy) and a Growth Score of B, Descartes Systems is positioned for potential outperformance in the logistics software sector.