Will These Numbers from NVE Be Good Enough for You? (NVEC)

Will These Numbers from NVE Be Good Enough for You?

NVE (Nasdaq: NVEC ) is expected to report Q3 earnings around Jan. 16. 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 NVE's revenues will increase 9.8% and EPS will expand 23.4%.

The average estimate for revenue is $6.8 million. On the bottom line, the average EPS estimate is $0.58.

Revenue details
Last quarter, NVE chalked up revenue of $5.8 million. GAAP reported sales were 12% lower than the prior-year quarter's $6.6 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, EPS came in at $0.50. GAAP EPS of $0.50 for Q2 were 3.8% lower than the prior-year quarter's $0.52 per share.

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 72.4%, 690 basis points better than the prior-year quarter. Operating margin was 51.5%, 450 basis points better than the prior-year quarter. Net margin was 42.0%, 330 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $28.6 million. The average EPS estimate is $2.50.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 278 members out of 374 rating the stock outperform, and 96 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give NVE a green thumbs-up, and 47 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 $63.00.

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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 of Motley 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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