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M Partners’ Ron Shuttleworth says Descartes Systems remains his top pick

Descartes Systems Group CEO Art Mesher. M Partners analyst Ron Shuttleworth says Descartes Systems Group keeps meeting his high expectations

 

Descartes Systems Group CEO Art Mesher. M Partners analyst Ron Shuttleworth says Descartes Systems Group keeps meeting his high expectations
Descartes Systems Group CEO Art Mesher. M Partners analyst Ron Shuttleworth says Descartes Systems Group keeps meeting his high expectations

M Partners analyst Ron Shuttleworth says Descartes Systems Group (Descartes Systems Group Stock Quote, Chart, News: TSX:DSG) keeps meeting his high expectations.

Descartes Wednesday reported its Q1, 2014 financial results. The company earned (U.S.) $2.8-million on revenue of of $34-million, up 14% from the $29.9-million topline the company posted in last year’s Q1.

Shuttleworth says the results were directly in line with his expectations. Revenue of $34-million met his target exactly and the company’s adjusted EBITDA of $10.4-million slightly bested his expectation of $10.3-million.

The M Partners analyst thinks Descartes will generate adjusted EBITDA of $43.4-million on revenue of $150.6-million this fiscal year. In a note note clients this morning, he maintained his BUY recommendation and $12.45 on-year target on Descartes.

After nearly becoming a dot-bomb casualty, former Gartner analyst Art Mesher rescued Descartes, which has since become a leader in global logistics technology; solutions that help its customers make and receive shipments.

Today, Descartes finds itself at the cutting edge of a trend; across the globe governments are looking to untangle and standardize their logistics operations. An increasing amount of evidence suggests a clear link between logistics performance and economics growth. The World Bank’s Logistics Performance Index showed that low and middle income countries such as Brazil and Columbia have given their economies a shot in the arm through improved logistics, while other emerging economies, such as Turkey, have been hurt by a lack of logistics infrastructure. Descartes’ revenue has grown from $66-million in fiscal 2009 to nearly $$126.9-million in fiscal 2013.

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About The Author /

Nick Waddell
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

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