Mercury Computer Systems
The 10-second takeaway
For the quarter ended March 31 (Q3), Mercury Computer Systems met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Mercury Computer Systems reported revenue of $67.0 million. The seven analysts polled by S&P Capital IQ expected sales of $66.9 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $59.9 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 $0.17. The five earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS of $0.17 for Q3 were 15% lower than the prior-year quarter's $0.20 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 52.3%, 260 basis points worse than the prior-year quarter. Operating margin was 10.8%, 110 basis points worse than the prior-year quarter. Net margin was 7.8%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $65.0 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $249.0 million. The average EPS estimate is $0.67.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 44 members out of 109 rating the stock outperform, and 65 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Mercury Computer Systems a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercury Computer Systems is outperform, with an average price target of $20.00.
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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.