The 10-second takeaway
For the quarter ended March 31 (Q2), MTS Systems missed estimates on revenues and whiffed on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share shrank.
Gross margins increased, operating margins shrank, net margins shrank.
MTS Systems recorded revenue of $129.0 million. The three analysts polled by S&P Capital IQ anticipated net sales of $133.4 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $113.1 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 $0.69. The two earnings estimates compiled by S&P Capital IQ forecast $0.90 per share. GAAP EPS of $0.69 for Q2 were 8.0% lower than the prior-year quarter's $0.75 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.7%, 40 basis points better than the prior-year quarter. Operating margin was 13.3%, 250 basis points worse than the prior-year quarter. Net margin was 8.6%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $137.0 million. On the bottom line, the average EPS estimate is $0.93.
Next year's average estimate for revenue is $546.6 million. The average EPS estimate is $3.81.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 72 members out of 79 rating the stock outperform, and seven members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give MTS Systems 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 MTS Systems is outperform, with an average price target of $58.67.
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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. He is the 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 don't 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.