The 10-second takeaway
For the quarter ended Dec. 30 (Q3), TESSCO Technologies beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.
Margins increased across the board.
TESSCO Technologies notched revenue of $204.5 million. The one analyst polled by S&P Capital IQ expected to see a top line of $181.0 million on the same basis. GAAP reported sales were 9.6% lower than the prior-year quarter's $226.3 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 $0.65. The three earnings estimates compiled by S&P Capital IQ averaged $0.65 per share. GAAP EPS of $0.65 for Q3 were 10% higher than the prior-year quarter's $0.59 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 19.1%, 170 basis points better than the prior-year quarter. Operating margin was 4.3%, 80 basis points better than the prior-year quarter. Net margin was 2.6%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $136.4 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $707.0 million. The average EPS estimate is $2.23.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 176 members out of 178 rating the stock outperform, and two members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give TESSCO Technologies 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 TESSCO Technologies is buy, with an average price target of $34.00.
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