The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Measurement Specialties missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins increased across the board.
Measurement Specialties recorded revenue of $87.8 million. The three analysts polled by S&P Capital IQ looked for revenue of $89.5 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $73.2 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 $0.52. The three earnings estimates compiled by S&P Capital IQ predicted $0.50 per share. GAAP EPS of $0.64 for Q2 were 52% higher than the prior-year quarter's $0.42 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 42.1%, 110 basis points better than the prior-year quarter. Operating margin was 12.9%, 150 basis points better than the prior-year quarter. Net margin was 11.9%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $89.9 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $361.0 million. The average EPS estimate is $2.13.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 111 members out of 117 rating the stock outperform, and six members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Measurement Specialties a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Measurement Specialties is outperform, with an average price target of $41.25.
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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.