The 10-second takeaway
For the quarter ended April 30 (Q3), LTX-Credence beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
LTX-Credence logged revenue of $30.8 million. The four analysts polled by S&P Capital IQ expected to see revenue of $30.5 million on the same basis. GAAP reported sales were 47% lower than the prior-year quarter's $58.7 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 -$0.10. The five earnings estimates compiled by S&P Capital IQ predicted -$0.13 per share. GAAP EPS were -$0.14 for Q3 compared to $0.47 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 51.3%, 1,090 basis points worse than the prior-year quarter. Operating margin was -19.6%, 3,750 basis points worse than the prior-year quarter. Net margin was -21.5%, 6,180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $44.0 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $132.7 million. The average EPS estimate is -$0.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 108 members out of 121 rating the stock outperform, and 13 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 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 $9.00.
Is LTX-Credence the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add LTX-Credence to My Watchlist.
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.