The 10-second takeaway
For the quarter ended July 31 (Q4), LTX-Credence missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
LTX-Credence recorded revenue of $43.5 million. The five analysts polled by S&P Capital IQ predicted sales of $44.2 million on the same basis. GAAP reported sales were 31% lower than the prior-year quarter's $62.7 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 $0.04. The five earnings estimates compiled by S&P Capital IQ predicted $0.03 per share. GAAP EPS of $0.03 for Q4 were 87% lower than the prior-year quarter's $0.23 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 54.7%, 770 basis points worse than the prior-year quarter. Operating margin was 1.8%, 1,890 basis points worse than the prior-year quarter. Net margin was 3.1%, 1,620 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $43.5 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $193.5 million. The average EPS estimate is $0.11.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 107 members out of 118 rating the stock outperform, and 11 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give LTX-Credence a green thumbs-up, and one 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 $9.40.
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