The 10-second takeaway
For the quarter ended March 31 (Q4), Measurement Specialties beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted.
Gross margins shrank, operating margins grew, net margins dropped.
Measurement Specialties reported revenue of $86.4 million. The one analyst polled by S&P Capital IQ expected sales of $82.1 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $76.8 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 $0.54. The four earnings estimates compiled by S&P Capital IQ predicted $0.44 per share. GAAP EPS of $0.52 for Q4 were 3.7% lower than the prior-year quarter's $0.54 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 40.0%, 70 basis points worse than the prior-year quarter. Operating margin was 11.7%, 150 basis points better than the prior-year quarter. Net margin was 9.7%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $87.2 million. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $359.5 million. The average EPS estimate is $2.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 120 rating the stock outperform, and six members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Measurement Specialties a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Measurement Specialties is buy, with an average price target of $40.50.
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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. The Motley Fool owns shares of Measurement Specialties. 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.