The 10-second takeaway
For the quarter ended June 30 (Q2), National Instruments beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share stayed the same.
Margins dropped across the board.
National Instruments reported revenue of $292.3 million. The five analysts polled by S&P Capital IQ expected a top line of $279.7 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $253.3 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 $0.21. The four earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. GAAP EPS of $0.22 were the same as 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 75.8%, 210 basis points worse than the prior-year quarter. Operating margin was 12.0%, 160 basis points worse than the prior-year quarter. Net margin was 9.0%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $288.1 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is $0.96.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 387 members out of 408 rating the stock outperform, and 21 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 149 give National Instruments a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on National Instruments is outperform, with an average price target of $32.50.
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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 has no positions in the stocks mentioned above. Motley Fool newsletter services recommend National Instruments. 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.