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- Barrington Research analyst Vincent Colicchio reiterated an Outperform rating on the shares of Forrester Research Inc FORR and lowered the price target from $48 to $39.
- The company reported Q4/22 non-GAAP EPS of $0.45, which exceeded the analyst’s forecast of $0.34 and the FactSet consensus forecast of $0.33.
- The non-GAAP EPS upside versus the analyst’s forecast was primarily due to a gross margin overage of 150 bps and a selling, general and administrative (SG&A) cost shortfall of 4%, which more than offset a 2% revenue shortfall.
- Revenue of $136.9 million was 2% less than the analyst’s forecast and 1% less than the FactSet consensus forecast.
- The research subscription business, represented by Contract Value (CV), grew 3% YOY in constant currency in Q4/22, down four points from the prior quarter on economic headwinds, small client losses and transition challenges, the analyst said.
- The analyst believes that the actions planned by management, including better sales force targeting of senior executives, should enable CV growth to improve in the second half of 2023.
- The analyst reduced 2023 non-GAAP EPS forecast to $2.35 from $2.48 (mainly on lower revenue and adjusted operating margins) and introduced an initial 2024 non-GAAP EPS forecast of $2.72.
- Price Action: FORR shares are trading higher by 3.93% at $33.04 on the last check Monday.
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