Pulse Electronics Earnings Preview

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Pulse Electronics (NYS: PULS) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Monday. Pulse Electronics is a producer of precision-engineered electronic components and modules.

What analysts say:

  • Buy, sell, or hold?: Half of analysts think investors should stand pat on Pulse Electronics while the remaining half rate the stock as a buy Half of analysts think investors should stand pat on Pulse Electronics. Analysts don't like Pulse Electronics as much as competitor KEMET overall. Four out of six analysts rate KEMET a buy compared to one of two for Pulse Electronics. That rating hasn't budged in three months as analysts have remained steadfast in their opinion of the stock.
  • Revenue forecasts: On average, analysts predict $92 million in revenue this quarter. That would represent a decline of 9.1% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.01 per share.

What our community says:
CAPS All-Stars are enthusiastically backing the stock, with 92.4% assigning it an outperform rating. The greater community agrees with the All-Stars, as 93.5% give it a rating of outperform. Despite the majority sentiment in favor of Pulse Electronics, the stock has a middling CAPS rating of three out of five stars.

Management:
Revenue has fallen for the past three quarters. The company's gross margin shrank by 4.1 percentage points in the last quarter. Revenue fell 21.3% while cost of sales fell 16.9% to $73.9 million from a year earlier.

Now let's get some insight into how efficient management is at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. Pulse Electronics has seen decreasing gross margins year-over-year for the last four quarters. Gross margins reflect the total sales revenue retained after costs. Here are Pulse Electronics' reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

23.0%

23.6%

20.9%

24.8%

Operating Margin

(0.7%)

(4.5%)

(11.7%)

4.1%

Net Margin

(1.2%)

(4.8%)

(5.0%)

1.2%

One final thing: If you want to keep tabs on Pulse Electronics movements, and for more analysis on the company, make sure you add it to your watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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