The 10-second takeaway
For the quarter ended March 31 (Q4), NVE beat expectations on revenues and earnings per share.
Compared with the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins contracted, net margins dropped.
NVE reported revenue of $7.6 million. The one analyst polled by S&P Capital IQ expected to see a top line of $7.3 million on the same basis. GAAP reported sales were 7.0% lower than the prior-year quarter's $8.2 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 $0.63. The one earnings estimate compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.63 for Q4 were 17% lower than the prior-year quarter's $0.76 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 70.1%, 240 basis points better than the prior-year quarter. Operating margin was 51.5%, 570 basis points worse than the prior-year quarter. Net margin was 40.7%, 410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.4 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $33.5 million. The average EPS estimate is $2.78.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 284 members out of 379 rating the stock outperform, and 95 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give NVE a green thumbs-up, and 48 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVE is buy, with an average price target of $58.00.
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