MTS Systems (Nasdaq: MTSC) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 29 (Q1), MTS Systems beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.

Margins dropped across the board.

Revenue details
 MTS Systems reported revenue of $142.7 million. The two analysts polled by S&P Capital IQ predicted sales of $135.5 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $133.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.87. The two earnings estimates compiled by S&P Capital IQ predicted $0.78 per share. GAAP EPS of $0.87 for Q1 were 11% lower than the prior-year quarter's $0.98 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 39.7%, 420 basis points worse than the prior-year quarter. Operating margin was 14.1%, 350 basis points worse than the prior-year quarter. Net margin was 9.7%, 190 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $135.1 million. On the bottom line, the average EPS estimate is $0.93.

Next year's average estimate for revenue is $578.5 million. The average EPS estimate is $4.05.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 70 members out of 78 rating the stock outperform, and eight members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give MTS Systems 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 MTS Systems is buy, with an average price target of $66.00.

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