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National Instruments Corp (NATI +0.00%) has worked hard to drive down costs so that it can boost earnings. That strategy paid off during the second quarter as earnings soared on the heels of record-setting revenue. With the company still in the early stages of this strategy, it anticipates further improvements in the coming quarters.
Metric |
Q2 2018 |
Q2 2017 |
Year-Over-Year Change |
---|---|---|---|
Net sales |
$341.0 million |
$318.6 million |
7% |
Non-GAAP net income |
$44.8 million |
$30.0 million |
49.4% |
Non-GAAP earnings per share |
$0.34 |
$0.23 |
47.8% |
Data source: National Instruments Corp.
Image source: Getty Images.
Margins improved as the company controlled costs:
CEO Alex Davern, commenting on the company's results, said: "We have made tremendous progress toward our profitability goal over the last 18 months. I am proud of what our team has accomplished." Meanwhile, CFO Karen Rapp, stated: "We had a great performance in the first half of 2018. I am encouraged by our focus on growth and profitability." Through the first half of this year, the company's operating income margin has averaged 10% versus 8.2% in the year-ago period. That improvement, along with higher sales, has helped drive its operating income up more than 27% year over year.
CEO Alex Davern said that "looking forward we plan to continue to align our investments and our business behind our new Core Strategic Vision with the goal of driving improved revenue growth while maintaining the discipline needed to hit our long-term operating model." In the near-term, the company expects to deliver record-breaking revenue once again in the third quarter when it sees sales ranging from $325 million to $355 million. Earnings, meanwhile, should be in the range of $0.32 to $0.46 per share. Longer term, the company aims to grow revenue at a 4% to 7% annual clip while increasing its operating margin up to 18%.