Why MTS Systems Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

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.

Interested in more info on MTS Systems? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2415117, ~/Articles/ArticleHandler.aspx, 11/26/2014 9:07:39 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement