RBC Capital analysts shared their views on The Descartes Systems Group Inc. (NASDAQ:DSGX) ahead of the upcoming Q2 earnings, scheduled to be released on September 7.
The analysts expect the company to report strong Q2 results, with revenue likely above consensus on solid organic growth and contribution from the XPS acquisition. The analysts anticipate revenue growth of 13% year-over-year to $118 million, slightly above the Street estimate of $116 million.
Adjusted EBITDA is expected to be up 14% year-over-year to $52 million, in line with the Street estimates, with margins of 44% below the Street’s estimate of 44.7%. GAAP EPS is expected to be $0.29, marginally above the Street estimate of $0.27.
According to the analysts, the company’s resilient organic growth reflects its move into more strategic segments of the market and ongoing structural demand, which implies a lower risk of material deceleration due to a cyclical slowdown in global trade.