New Relic's Return On Capital Employed Insights
Portfolio Pulse from Benzinga Insights
New Relic (NYSE:NEWR) reported Q4 sales of $242.49 million and a loss of $52.46 million. The company's Return on Capital Employed (ROCE) was -0.14%, suggesting inefficient capital allocation. However, Q4 earnings per share of $0.42 beat analyst predictions of $0.22.
May 25, 2023 | 3:02 pm
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New Relic's Q4 sales reached $242.49 million with a loss of $52.46 million. The company's ROCE of -0.14% suggests inefficient capital allocation, but its EPS of $0.42 beat analyst expectations.
New Relic's Q4 results show mixed signals. While the company's sales increased and EPS beat analyst predictions, the negative ROCE indicates inefficient capital allocation. This could lead to neutral short-term price movement as investors weigh the positive EPS surprise against the negative ROCE.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100