Zacks: Brokerages Anticipate Open Text Corp (OTEX) to Announce $0.60 Earnings Per Share

Brokerages forecast that Open Text Corp (NASDAQ:OTEX) (TSE:OTC) will report earnings of $0.60 per share for the current fiscal quarter, Zacks Investment Research reports. Three analysts have provided estimates for Open Text’s earnings. The highest EPS estimate is $0.61 and the lowest is $0.59. Open Text posted earnings per share of $0.54 in the same quarter last year, which suggests a positive year over year growth rate of 11.1%. The business is expected to announce its next earnings results on Thursday, November 1st.

According to Zacks, analysts expect that Open Text will report full year earnings of $2.70 per share for the current financial year, with EPS estimates ranging from $2.63 to $2.80. For the next year, analysts anticipate that the firm will post earnings of $3.03 per share, with EPS estimates ranging from $2.90 to $3.16. Zacks Investment Research’s earnings per share averages are an average based on a survey of sell-side research firms that follow Open Text.

Open Text (NASDAQ:OTEX) (TSE:OTC) last issued its quarterly earnings results on Thursday, August 2nd. The software maker reported $0.72 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.68 by $0.04. Open Text had a net margin of 8.60% and a return on equity of 8.09%. The company had revenue of $754.30 million during the quarter, compared to the consensus estimate of $732.02 million. During the same quarter in the prior year, the firm posted $0.60 EPS. The firm’s quarterly revenue was up 13.7% on a year-over-year basis.

A number of equities analysts recently issued reports on OTEX shares. Raymond James upped their price objective on shares of Open Text from $42.00 to $48.00 and gave the stock an “outperform” rating in a research report on Friday, August 3rd. Barclays upped their price objective on shares of Open Text from $46.00 to $48.00 and gave the stock an “overweight” rating in a research report on Monday, August 6th. TD Securities upped their price objective on shares of Open Text from $40.00 to $43.00 and gave the stock a “buy” rating in a research report on Friday, August 3rd. Industrial Alliance Securities upped their price objective on shares of Open Text from $40.00 to $42.00 in a research report on Friday, August 3rd. Finally, ValuEngine upgraded shares of Open Text from a “hold” rating to a “buy” rating in a research report on Monday, July 2nd. Two analysts have rated the stock with a sell rating, one has given a hold rating and nine have issued a buy rating to the stock. Open Text currently has an average rating of “Buy” and an average target price of $44.18.

Hedge funds have recently added to or reduced their stakes in the stock. Wells Fargo & Company MN increased its position in Open Text by 4.2% in the 1st quarter. Wells Fargo & Company MN now owns 99,321 shares of the software maker’s stock valued at $3,456,000 after acquiring an additional 4,003 shares during the period. Neuberger Berman Group LLC acquired a new position in Open Text in the 1st quarter valued at approximately $241,000. Northern Trust Corp increased its position in Open Text by 40.9% in the 1st quarter. Northern Trust Corp now owns 151,311 shares of the software maker’s stock valued at $5,265,000 after acquiring an additional 43,956 shares during the period. BlackRock Inc. increased its position in Open Text by 31.6% in the 1st quarter. BlackRock Inc. now owns 1,133,965 shares of the software maker’s stock valued at $39,463,000 after acquiring an additional 272,127 shares during the period. Finally, Federated Investors Inc. PA increased its position in Open Text by 130.0% in the 1st quarter. Federated Investors Inc. PA now owns 69,000 shares of the software maker’s stock valued at $2,401,000 after acquiring an additional 39,000 shares during the period. Institutional investors and hedge funds own 67.61% of the company’s stock.

Shares of Open Text stock opened at $35.90 on Friday. Open Text has a 1-year low of $32.05 and a 1-year high of $40.31. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.70. The company has a market cap of $10.20 billion, a PE ratio of 39.45 and a beta of 0.27.

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 21st. Investors of record on Friday, August 31st were given a dividend of $0.1518 per share. This represents a $0.61 dividend on an annualized basis and a yield of 1.69%. The ex-dividend date was Thursday, August 30th. Open Text’s dividend payout ratio is 67.03%.

About Open Text

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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