The 10-second takeaway
For the quarter ended Oct. 31 (Q1), LTX-Credence met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased.
Margins expanded across the board.
LTX-Credence booked revenue of $43.2 million. The four analysts polled by S&P Capital IQ anticipated sales of $43.8 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $33.8 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 $0.03. The five earnings estimates compiled by S&P Capital IQ averaged $0.04 per share. GAAP EPS were $0.01 for Q1 against -$0.10 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 54.4%, 100 basis points better than the prior-year quarter. Operating margin was 1.6%, 1,640 basis points better than the prior-year quarter. Net margin was 1.3%, 1,580 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $37.7 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $180.5 million. The average EPS estimate is $0.21.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 108 members out of 119 rating the stock outperform, and 11 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 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 $8.40.
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