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Why Xcerra Corporation (Formerly LTX-Credence) Shares Popped Today

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 LTX Credence Corp. (NASDAQ: XCRA  )  -- which as of today changed its respective name and ticker to Xcerra (NASDAQ: XCRA) -- rose more than 17% early Thursday, then settled to close up around 8% after the company released better-than-expected fiscal third quarter results.

So what: Quarterly sales came in at $105.4 million, which translated to adjusted net income of $3.7 million, or $0.08 per share. Analysts, on average, were looking for earnings of just $0.04 per share on sales of $102.8 million.

Xcerra also expects fiscal fourth-quarter sales in the range of $113 million to $117 million, with adjusted net income of $0.12 to $0.16 per share. By contrast, analysts were modeling fiscal Q4 earnings of $0.12 per share on sales of $110.6 million.

Now what: Xcerra CEO Dave Tacelli said: "During the quarter we saw strong growth in our semiconductor test products as the cyclical recovery in the semiconductor industry gained momentum. We see this positive outlook continuing into our fourth fiscal quarter, and we are excited about our growth prospects for calendar year 2014."

To be sure, though Xcerra currently isn't profitable on a GAAP basis, it's certainly moving in the right direction. With shares trading around 9.6 times next year's estimated earnings and assuming Xcerra can maintain its momentum going forward, I think the stock might just be worth a look for patient, long-term investors.

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Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

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Related Tickers

9/4/2015 3:59 PM
XCRA $6.16 Down -0.18 -2.84%
XCERRA Corp CAPS Rating: *****