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What: Shares of MTS Systems (NASDAQ: MTSC ) dropped by as much as 13% today after the company reported disappointing earnings.
So what: Revenue in the fiscal second quarter came in at $137.7 million, which topped the $135 million analysts were expecting. However, the bottom-line result of $0.69 per share was significantly worse than the $0.86-per-share consensus forecast. The sensors segment continues to face soft market conditions.
Now what: MTS also reduced its full-year outlook to factor in weakness in the sensor segment as well as timing of orders in the test segment. The company was expecting sensor sales to improve during the second half of the year -- a recovery that MTS now believes will be delayed. Full-year revenue is expected in the range of $560 million to $575 million, which would represent growth of 4% to 6%. That's down from its previous growth forecast of 5% to 10%. Full-year earnings per share should be $3.30 to $3.70, while the Street was expecting $4.06 per share.
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