The 10-second takeaway
For the quarter ended Jan. 31 (Q2), LTX-Credence whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
LTX-Credence booked revenue of $24.1 million. The four analysts polled by S&P Capital IQ wanted to see sales of $28.1 million on the same basis. GAAP reported sales were 54% lower than the prior-year quarter's $52.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.20. The four earnings estimates compiled by S&P Capital IQ averaged -$0.17 per share. GAAP EPS were -$0.20 for Q2 versus $0.09 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.2%, 1,460 basis points worse than the prior-year quarter. Operating margin was -44.1%, 5,240 basis points worse than the prior-year quarter. Net margin was -40.2%, 4,920 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $30.4 million. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $126.0 million. The average EPS estimate is -$0.42.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 111 members out of 124 rating the stock outperform, and 13 members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give LTX-Credence 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 LTX-Credence is outperform, with an average price target of $8.40.
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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.