The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Measurement Specialties met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Measurement Specialties booked revenue of $76.3 million. The three analysts polled by S&P Capital IQ foresaw net sales of $75.7 million. Sales were 6.5% higher than the prior-year quarter's $71.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.30. The four earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS of $0.30 for Q3 were 39% lower than the prior-year quarter's $0.49 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 37.8%, 360 basis points worse than the prior-year quarter. Operating margin was 8.5%, 710 basis points worse than the prior-year quarter. Net margin was 6.2%, 430 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $84.2 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $310.7 million. The average EPS estimate is $1.72.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 118 members out of 124 rating the stock outperform, and six members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Measurement Specialties a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Measurement Specialties is buy, with an average price target of $37.25.
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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. The Motley Fool owns shares of Measurement Specialties. 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.