MTS Systems Outruns Estimates Again
MTS Systems (NAS: MTSC) reported earnings on Feb. 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), MTS Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Gross margins dropped, operating margins grew, net margins dropped.
MTS Systems booked revenue of $133.7 million. The three analysts polled by S&P Capital IQ hoped for sales of $124.0 million. Sales were 26% higher than the prior-year quarter's $105.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.98. The two earnings estimates compiled by S&P Capital IQ anticipated $0.80 per share. GAAP EPS of $0.98 for Q1 were 14% higher than the prior-year quarter's $0.86 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 43.9%, 20 basis points worse than the prior-year quarter. Operating margin was 17.6%, 20 basis points better than the prior-year quarter. Net margin was 11.6%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $124.1 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $516.7 million. The average EPS estimate is $3.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 73 members out of 80 rating the stock outperform, and seven members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give MTS Systems a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MTS Systems is outperform, with an average price target of $53.33.
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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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