The 10-second takeaway
For the quarter ended March 31 (Q1), National Instruments met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share stayed the same.
Margins shrank across the board.
National Instruments logged revenue of $286.5 million. The six analysts polled by S&P Capital IQ anticipated net sales of $288.1 million on the same basis. GAAP reported sales were 9.7% higher than the prior-year quarter's $261.1 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 $0.21. The four earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. Non-GAAP EPS of $0.21 for Q1 were 31% higher than the prior-year quarter's $0.16 per share. GAAP EPS of $0.15 were the same as 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 75.5%, 100 basis points worse than the prior-year quarter. Operating margin was 6.3%, 320 basis points worse than the prior-year quarter. Net margin was 6.5%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $306.1 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $1.23 billion. The average EPS estimate is $1.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 377 members out of 397 rating the stock outperform, and 20 members rating it underperform. Among 157 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 154 give National Instruments a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on National Instruments is outperform, with an average price target of $34.80.
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