The 10-second takeaway
For the quarter ended March 31 (Q1), KEYW Holding beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share shrank to a loss.
Margins shrank across the board.
KEYW Holding booked revenue of $77.9 million. The seven analysts polled by S&P Capital IQ predicted a top line of $75.2 million on the same basis. GAAP reported sales were 40% higher than the prior-year quarter's $55.8 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 -$0.06. The seven earnings estimates compiled by S&P Capital IQ anticipated -$0.03 per share. GAAP EPS were -$0.06 for Q1 compared to $0.01 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 30.9%, 300 basis points worse than the prior-year quarter. Operating margin was -4.0%, 520 basis points worse than the prior-year quarter. Net margin was -2.9%, 320 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $81.8 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $330.0 million. The average EPS estimate is -$0.02.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 25 members out of 26 rating the stock outperform, and one members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give KEYW Holding a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KEYW Holding is buy, with an average price target of $17.71.
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