The 10-second takeaway
For the quarter ended Sep. 30 (Q3), KEYW Holding met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Margins grew across the board.
KEYW Holding reported revenue of $57.4 million. The six analysts polled by S&P Capital IQ anticipated sales of $56.9 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $54.0 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 $0.01. The five earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS of $0.01 for Q3 were much higher than the prior-year quarter's $0.00 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 34.0%, 590 basis points better than the prior-year quarter. Operating margin was 1.2%, 60 basis points better than the prior-year quarter. Net margin was 0.6%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $77.3 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $245.0 million. The average EPS estimate is $0.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 23 members out of 23 rating the stock outperform, and members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give KEYW Holding a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KEYW Holding is buy, with an average price target of $15.75.
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