NVE Beats on Both Top and Bottom Lines

Before you go, we thought you'd like these...
Before you go close icon

NVE (NAS: NVEC) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), NVE beat expectations on revenues and earnings per share.

Compared with the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.


Gross margins expanded, operating margins contracted, net margins dropped.

Revenue details
NVE reported revenue of $7.6 million. The one analyst polled by S&P Capital IQ expected to see a top line of $7.3 million on the same basis. GAAP reported sales were 7.0% lower than the prior-year quarter's $8.2 million.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.63. The one earnings estimate compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.63 for Q4 were 17% lower than the prior-year quarter's $0.76 per share.

anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 70.1%, 240 basis points better than the prior-year quarter. Operating margin was 51.5%, 570 basis points worse than the prior-year quarter. Net margin was 40.7%, 410 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $8.4 million. On the bottom line, the average EPS estimate is $0.71.

Next year's average estimate for revenue is $33.5 million. The average EPS estimate is $2.78.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 284 members out of 379 rating the stock outperform, and 95 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give NVE a green thumbs-up, and 48 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVE is buy, with an average price target of $58.00.

Over the decades, small-cap stocks like NVE have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.

At the time this article was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners