The 10-second takeaway
For the quarter ended Sep. 30 (Q2), NVE whiffed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted.
Margins expanded across the board.
NVE recorded revenue of $5.8 million. The one analyst polled by S&P Capital IQ predicted sales of $7.4 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $6.6 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 $0.50. The one earnings estimate compiled by S&P Capital IQ forecast $0.62 per share. GAAP EPS of $0.50 for Q2 were 3.8% lower than the prior-year quarter's $0.52 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 72.4%, 690 basis points better than the prior-year quarter. Operating margin was 51.5%, 450 basis points better than the prior-year quarter. Net margin was 42.0%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $7.5 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $31.0 million. The average EPS estimate is $2.68.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 281 members out of 376 rating the stock outperform, and 95 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give NVE a green thumbs-up, and 46 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVE is buy, with an average price target of $63.00.
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