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Electronics for Imaging Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:47PM

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Just the facts, Fool.

Electronics for Imaging (Nasdaq: EFII) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Electronics for Imaging beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.

Gross margins were steady, operating margins grew, net margins grew.

Revenue details
Electronics for Imaging reported revenue of $171.4 million. The three analysts polled by S&P Capital IQ hoped for a top line of $165.3 million on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $160.1 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 $0.33. The four earnings estimates compiled by S&P Capital IQ anticipated $0.32 per share. Non-GAAP EPS of $0.33 for Q1 were 10% higher than the prior-year quarter's $0.30 per share. GAAP EPS of $0.17 for Q1 were 31% higher than the prior-year quarter's $0.13 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 54.8%, much about the same as the prior-year quarter. Operating margin was 6.7%, 100 basis points better than the prior-year quarter. Net margin was 4.9%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $172.0 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $696.3 million. The average EPS estimate is $1.41.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 52 members out of 65 rating the stock outperform, and 13 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Electronics for Imaging 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 Electronics for Imaging is buy, with an average price target of $26.25.

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Stocks Mentioned

Electronics for Imaging, Inc. Stock Quote
Electronics for Imaging, Inc.
EFII

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