The 10-second takeaway
For the quarter ended Sep. 30 (Q3), DTS missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
DTS booked revenue of $22.2 million. The 10 analysts polled by S&P Capital IQ expected a top line of $24.4 million on the same basis. GAAP reported sales were 8.2% higher than the prior-year quarter's $20.5 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 -$0.61. The nine earnings estimates compiled by S&P Capital IQ averaged $0.07 per share. GAAP EPS were -$1.04 for Q3 against $0.17 per share for 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 90.5%, 840 basis points worse than the prior-year quarter. Operating margin was -57.6%, 7,790 basis points worse than the prior-year quarter. Net margin was -85.8%, 9,990 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $36.1 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $108.6 million. The average EPS estimate is $0.92.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 51 members out of 75 rating the stock outperform, and 24 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give DTS a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DTS is outperform, with an average price target of $25.92.
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