American Software Stock Is A Pullback Opportunity

On June 8, 2021, American Software released its fiscal fourth-quarter 2021 ended April 30, 2021, and full-year 2021 results. The Company reported an earnings-per-share (EPS) profits of $0.11 beating analyst estimates for $0.05, by $0.06. Revenues fell (-2%) year-over-year (YoY) to $28.6 million. Recurring revenue streams for Maintenance and Cloud Subscriptions rose to 60% of total revenues compared to 57% same period year ago. Subscription fees rose 28% YoY to $8.1 million and Software license revenues rose 15% YoY to $1.2 million. Cloud Services annual contract value (ACV) rose 45% to $38.3 million for Q4 2021. Maintenance revenues for the quarter fell (-12%) YoY to $9.2 million. Professional services revenues fell (-13%) to $10.1 million. Subscription revenues rose 31% YoY to $28.9 million while Software license revenues fell (-61%) YoY which reflects the transition to a software-as-a-service (SaaS) subscription model. American Software CEO, Allan Dow stated:

American Software CEO Allan Dow set the tone:

He continued:

The supply chain disruptions have been good for business as they move past pandemic-related churn and return to more traditional stability. CEO Dow expects to see the rise in recurring revenues accelerate. Cloud revenues rose 45% YoY as the Company added seven new customers in nine countries. He concluded:

Using the rifle charts on the weekly and daily time frames provides a precision view of the playing field for AMSWA shares. The weekly rifle chart peaked on the earnings spike at the $28.38 Fibonacci (fib) level before snapping back down. The rising weekly 5-period moving average (MA) sits at the $21.92 fib with a rising 15-period MA at $21.02. The weekly upper Bollinger Band (BB) sits at $24.08. The weekly stochastic has crossed back up. The daily rifle chart is attempting to bounce off the daily market structure low (MSL) buy trigger above $22.96. The daily formed a market structure high (MSH) sell trigger on the breakdown under $25.95. The daily stochastic is still falling at the 40-band. Prudent investors can monitor for opportunistic pullback levels at the $22.73 fib, $21.92 fib, $20.78 fib $19.49 fib, $18.18 fib, and the $17.64 fib. The upside trajectories range from the $27.56 fib up towards the $36.40 fib level.

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