Does The Street Have LTX-Credence Figured Out?

Seth Jayson, The Motley Fool
Updated

LTX-Credence (NAS: LTXC) is expected to report Q2 earnings on Feb. 27. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict LTX-Credence's revenues will expand 53.2% and EPS will remain in the red.

The average estimate for revenue is $36.9 million. On the bottom line, the average EPS estimate is -$0.06.


Revenue details
 Last quarter, LTX-Credence recorded revenue of $43.2 million. GAAP reported sales were 28% higher than the prior-year quarter's $33.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $0.03. GAAP EPS were $0.01 for Q1 compared to -$0.10 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 54.4%, 100 basis points better than the prior-year quarter. Operating margin was 1.6%, 1,640 basis points better than the prior-year quarter. Net margin was 1.3%, 1,580 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $174.6 million. The average EPS estimate is $0.13.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 107 members out of 118 rating the stock outperform, and 11 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give LTX-Credence 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 LTX-Credence is buy, with an average price target of $8.40.

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The article Does The Street Have LTX-Credence Figured Out? originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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