The 10-second takeaway
For the quarter ended March 30 (Q2), MTS Systems beat slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share stayed the same.
Margins dropped across the board.
MTS Systems logged revenue of $136.9 million. The two analysts polled by S&P Capital IQ predicted a top line of $135.0 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $129.0 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 $0.73. The two earnings estimates compiled by S&P Capital IQ anticipated $0.86 per share. Non-GAAP EPS of $0.73 for Q2 were 5.8% higher than the prior-year quarter's $0.69 per share. GAAP EPS of $0.69 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 39.4%, 430 basis points worse than the prior-year quarter. Operating margin was 11.4%, 240 basis points worse than the prior-year quarter. Net margin was 8.1%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $150.0 million. On the bottom line, the average EPS estimate is $1.13.
Next year's average estimate for revenue is $582.8 million. The average EPS estimate is $4.06.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 73 members out of 81 rating the stock outperform, and eight members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give MTS Systems 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 MTS Systems is buy, with an average price target of $68.50.
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