Mercury Computer Systems Beats Analyst Estimates on EPS
Mercury Computer Systems (NAS: MRCY) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Mercury Computer Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and earnings per share grew significantly.
Margins increased across the board.
Mercury Computer Systems logged revenue of $68 million. The eight analysts polled by S&P Capital IQ wanted to see a top line of $68 million. Sales were 22% higher than the prior-year quarter's $56 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.30. The six earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. GAAP EPS of $0.30 for Q2 were 36% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 60.2%, 320 basis points better than the prior-year quarter. Operating margin was 20.7%, 840 basis points better than the prior-year quarter. Net margin was 13.3%, 400 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $66 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $255 million. The average EPS estimate is $0.72.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 44 members out of 110 rating the stock outperform, and 66 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Mercury Computer Systems a green thumbs-up, and 26 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercury Computer Systems is buy, with an average price target of $21.50.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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