The 10-second takeaway
For the quarter ended Nov. 30 (Q2), Mistras Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and earnings per share increased significantly.
Gross margins shrank, operating margins expanded, net margins expanded.
Mistras Group logged revenue of $114 million. The seven analysts polled by S&P Capital IQ predicted revenue of $105 million. Sales were 29% higher than the prior-year quarter's $89 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.28. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share. GAAP EPS of $0.28 for Q2 were 33% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 34.1%, 90 basis points worse than the prior-year quarter. Operating margin was 12.0%, 40 basis points better than the prior-year quarter. Net margin was 7.0%, 60 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $93 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $404 million. The average EPS estimate is $0.77.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 22 members out of 27 rating the stock outperform, and five members rating it underperform. Among eight CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Mistras Group a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mistras Group is hold, with an average price target of $23.50.
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