Mercury Computer Systems
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Mercury Computer Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and earnings per share grew significantly.
Margins increased across the board.
Mercury Computer Systems logged revenue of $68 million. The eight analysts polled by S&P Capital IQ wanted to see a top line of $68 million. Sales were 22% higher than the prior-year quarter's $56 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.30. The six earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. GAAP EPS of $0.30 for Q2 were 36% higher than the prior-year quarter's $0.22 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 60.2%, 320 basis points better than the prior-year quarter. Operating margin was 20.7%, 840 basis points better than the prior-year quarter. Net margin was 13.3%, 400 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $66 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $255 million. The average EPS estimate is $0.72.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 44 members out of 110 rating the stock outperform, and 66 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Mercury Computer Systems a green thumbs-up, and 26 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercury Computer Systems is buy, with an average price target of $21.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.