TechTarget Earnings Perspective: Return On Invested Capital

According to Benzinga Pro, during Q1, TechTarget TTGT earned $7.16 million, a 144.87% increase from the preceding quarter. TechTarget's sales decreased to $68.17 million, a 11.47% change since Q4. In Q4, TechTarget brought in $77.00 million in sales but lost $15.96 million in earnings.

What Is Return On Invested Capital?

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, TechTarget posted an ROIC of 1.54%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, TechTarget posted an ROIC of 1.54%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For TechTarget, the positive return on invested capital ratio of 1.54% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Upcoming Earnings Estimate

TechTarget reported Q1 earnings per share at $0.53/share, which beat analyst predictions of $0.47/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.