MTS Systems (Nasdaq: MTSC ) reported earnings on Feb. 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), MTS Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Gross margins dropped, operating margins grew, net margins dropped.
Revenue details
MTS Systems booked revenue of $133.7 million. The three analysts polled by S&P Capital IQ hoped for sales of $124.0 million. Sales were 26% higher than the prior-year quarter's $105.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS details
EPS came in at $0.98. The two earnings estimates compiled by S&P Capital IQ anticipated $0.80 per share. GAAP EPS of $0.98 for Q1 were 14% higher than the prior-year quarter's $0.86 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 43.9%, 20 basis points worse than the prior-year quarter. Operating margin was 17.6%, 20 basis points better than the prior-year quarter. Net margin was 11.6%, 100 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $124.1 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $516.7 million. The average EPS estimate is $3.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 73 members out of 80 rating the stock outperform, and seven members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give MTS Systems 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 MTS Systems is outperform, with an average price target of $53.33.
Over the decades, small-cap stocks, like MTS Systems have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add MTS Systems to My Watchlist.
