The 10-second takeaway
For the quarter ended March 31 (Q1), DTS beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Margins contracted across the board.
DTS booked revenue of $32.7 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $30.2 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $26.9 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 $0.22. The eight earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. Non-GAAP EPS of $0.22 for Q1 were 41% lower than the prior-year quarter's $0.37 per share. GAAP EPS were -$0.08 for Q1 against $0.24 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 92.9%, 640 basis points worse than the prior-year quarter. Operating margin was 3.2%, much worse than the prior-year quarter. Net margin was -4.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $28.0 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $137.2 million. The average EPS estimate is $1.09.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 49 members out of 70 rating the stock outperform, and 21 members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give DTS a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DTS is hold, with an average price target of $18.00.
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