MTS Systems Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of industrial sensor maker MTS Systems (NAS: MTSC) have popped by as much as 19% today after the company reported strong quarterly earnings last night.
So what: Revenue in the fourth quarter added up to $131.6 million, which turned into $0.94 in earnings per share by the time it got to the bottom line. The results demolished consensus estimates for revenue and profit, which called for $113.9 million and $0.66 in earnings per share, respectively.
Now what: It was a record quarter for the company, with revenue jumping 24% and earnings soaring 74% as its test and sensors businesses saw healthy order activity and high backlog. The U.S. Air Force has also lifted a previously imposed suspension of MTS business, which had been hanging over the company and overshadowed last quarter's results. The suspension had been imposed in March due to concerns over export laws and an investigation is still ongoing, but at least now the company can start to try to move on.
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