The 10-second takeaway
For the quarter ended Jan. 31 (Q2), LTX-Credence missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP loss per share dropped. GAAP loss per share contracted.
Margins grew across the board.
LTX-Credence booked revenue of $35.0 million. The four analysts polled by S&P Capital IQ foresaw net sales of $36.9 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $24.1 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 -$0.08. The four earnings estimates compiled by S&P Capital IQ averaged -$0.06 per share. Non-GAAP EPS were -$0.08 for Q2 against -$0.20 per share for the prior-year quarter. GAAP EPS were -$0.07 for Q2 compared to -$0.20 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 53.0%, 780 basis points better than the prior-year quarter. Operating margin was -12.1%, much better than the prior-year quarter. Net margin was -9.4%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $43.6 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $174.6 million. The average EPS estimate is $0.13.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 107 members out of 118 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 buy, with an average price target of $8.00.
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