LTX-Credence Goes Red
LTX-Credence (NAS: LTXC) reported earnings March 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 31 (Q2), LTX-Credence whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
LTX-Credence booked revenue of $24.1 million. The four analysts polled by S&P Capital IQ wanted to see sales of $28.1 million on the same basis. GAAP reported sales were 54% lower than the prior-year quarter's $52.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.20. The four earnings estimates compiled by S&P Capital IQ averaged -$0.17 per share. GAAP EPS were -$0.20 for Q2 versus $0.09 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.2%, 1,460 basis points worse than the prior-year quarter. Operating margin was -44.1%, 5,240 basis points worse than the prior-year quarter. Net margin was -40.2%, 4,920 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $30.4 million. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $126.0 million. The average EPS estimate is -$0.42.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 111 members out of 124 rating the stock outperform, and 13 members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give LTX-Credence a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on LTX-Credence is outperform, with an average price target of $8.40.
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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.