The 10-second takeaway
For the quarter ended Dec. 31 (Q1), MTS Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Gross margins dropped, operating margins grew, net margins dropped.
MTS Systems booked revenue of $133.7 million. The three analysts polled by S&P Capital IQ hoped for sales of $124.0 million. Sales were 26% higher than the prior-year quarter's $105.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.98. The two earnings estimates compiled by S&P Capital IQ anticipated $0.80 per share. GAAP EPS of $0.98 for Q1 were 14% higher than the prior-year quarter's $0.86 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 43.9%, 20 basis points worse than the prior-year quarter. Operating margin was 17.6%, 20 basis points better than the prior-year quarter. Net margin was 11.6%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $124.1 million. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $516.7 million. The average EPS estimate is $3.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 73 members out of 80 rating the stock outperform, and seven members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give MTS Systems 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 MTS Systems is outperform, with an average price target of $53.33.
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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.