Mercury Computer Systems Beats Up on Analysts Yet Again
Mercury Computer Systems (NAS: MRCY) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q3), Mercury Computer Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Mercury Computer Systems reported revenue of $67.0 million. The seven analysts polled by S&P Capital IQ expected sales of $66.9 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $59.9 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 $0.17. The five earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS of $0.17 for Q3 were 15% lower than the prior-year quarter's $0.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.3%, 260 basis points worse than the prior-year quarter. Operating margin was 10.8%, 110 basis points worse than the prior-year quarter. Net margin was 7.8%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $65.0 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $249.0 million. The average EPS estimate is $0.67.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 44 members out of 109 rating the stock outperform, and 65 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Mercury Computer Systems a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercury Computer Systems is outperform, with an average price target of $20.00.
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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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