Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of National Instruments Slumped Today

By Timothy Green - May 1, 2019 at 1:43PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Earnings growth wasn't enough to offset disappointing revenue.

What happened

Shares of National Instruments (NATI 0.92%) fell on Wednesday after the company reported mixed first-quarter results. National Instruments reported earnings that were in line with analyst expectations, but its revenue came up well short. The stock was down about 7.5% at 1:10 p.m. EDT, after having been down as much as 15.1% earlier in the day.

So what

National Instruments reported first-quarter revenue of $311.1 million, down 0.3% year over year and about $10 million below the average analyst estimate. Product revenue was down 1% to $277.7 million, while software maintenance revenue grew 5.8% to $33.4 million.

National Instruments hardware and software.

Image source: National Instruments.

Orders over $20,000 were up 6% year over year, while orders under $20,000 were down 6% year over year. Currency knocked down the company's revenue by about $6 million compared to the prior-year period.

Non-GAAP earnings per share came in at $0.30, up from $0.25 in the prior-year period and in line with analyst expectations. GAAP EPS was $0.17, down from $0.18 in the first quarter of last year.

Now what

"I am proud of the team's execution in the first quarter, despite the weakened industrial economy, especially in Europe," said National Instruments CEO Alex Davern.

National Instruments expects to produce second-quarter revenue between $326 million and $356 million, along with GAAP EPS between $0.16 and $0.30, and non-GAAP EPS between $0.28 and $0.42.

While National Instruments was able to boost its adjusted profits, slumping revenue was enough to send the stock lower.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

National Instruments Corporation Stock Quote
National Instruments Corporation
NATI
$35.00 (0.92%) $0.32

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
344%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.