The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Mercury Systems beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Mercury Systems notched revenue of $49.8 million. The seven analysts polled by S&P Capital IQ predicted a top line of $47.9 million on the same basis. GAAP reported sales were 27% lower than the prior-year quarter's $68.0 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 -$0.15. The four earnings estimates compiled by S&P Capital IQ forecast -$0.20 per share. GAAP EPS were -$0.16 for Q2 versus $0.30 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 35.3%, 2,490 basis points worse than the prior-year quarter. Operating margin was -13.7%, 3,440 basis points worse than the prior-year quarter. Net margin was -9.6%, 2,290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $49.2 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $201.3 million. The average EPS estimate is -$0.35.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 46 members out of 105 rating the stock outperform, and 59 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Mercury Systems a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercury Systems is hold, with an average price target of $9.68.
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