The 10-second takeaway
For the quarter ended March 31 (Q1), DTS beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share shrank significantly.
Gross margins improved, operating margins dropped, net margins contracted.
DTS notched revenue of $26.9 million. The 11 analysts polled by S&P Capital IQ hoped for revenue of $25.5 million on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $26.8 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 $0.37. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.24 for Q1 were 25% lower than the prior-year quarter's $0.32 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 99.3%, 10 basis points better than the prior-year quarter. Operating margin was 25.7%, 930 basis points worse than the prior-year quarter. Net margin was 15.0%, 620 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $24.6 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $114.6 million. The average EPS estimate is $1.63.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 51 members out of 72 rating the stock outperform, and 21 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give DTS a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DTS is outperform, with an average price target of $34.21.
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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.