Mitcham Industries Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

Mitcham Industries (NAS: MIND) reported earnings on June 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q1), Mitcham Industries missed estimates on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased.


Gross margins shrank, operating margins contracted, net margins increased.

Revenue details
Mitcham Industries notched revenue of $34.6 million. The four analysts polled by S&P Capital IQ expected revenue of $38.0 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $26.5 million.

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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 five earnings estimates compiled by S&P Capital IQ forecast $0.82 per share. GAAP EPS of $0.63 for Q1 were 8.6% higher than the prior-year quarter's $0.58 per share.

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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 48.8%, 370 basis points worse than the prior-year quarter. Operating margin was 33.7%, 20 basis points worse than the prior-year quarter. Net margin was 24.4%, 140 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $28.8 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $141.2 million. The average EPS estimate is $2.60.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 325 members out of 331 rating the stock outperform, and six members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Mitcham Industries a green thumbs-up, and none give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mitcham Industries is outperform, with an average price target of $35.33.

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At the time thisarticle 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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