National Instruments Misses Where it Counts

National Instruments (Nasdaq: NATI  ) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), National Instruments beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
National Instruments logged revenue of $300.3 million. The five analysts polled by S&P Capital IQ expected to see revenue of $282.5 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $278.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.23. The three earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. GAAP EPS of $0.17 for Q4 were 15% lower than the prior-year quarter's $0.20 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 75.2%, 60 basis points worse than the prior-year quarter. Operating margin was 11.5%, 30 basis points worse than the prior-year quarter. Net margin was 6.9%, 180 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $268.0 million. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $1.18 billion. The average EPS estimate is $1.16.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 378 members out of 399 rating the stock outperform, and 21 members rating it underperform. Among 169 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 167 give National Instruments a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on National Instruments is outperform, with an average price target of $28.00.

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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 recommends National Instruments. 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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10/1/2014 3:59 PM
NATI $30.33 Down -0.60 -1.94%
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