The 10-second takeaway
For the quarter ended April 30 (Q3), LTX-Credence missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP loss per share dropped. GAAP loss per share shrank.
Margins grew across the board.
LTX-Credence booked revenue of $36.3 million. The three analysts polled by S&P Capital IQ foresaw sales of $38.5 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $30.8 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 -$0.08. The four earnings estimates compiled by S&P Capital IQ anticipated -$0.06 per share. Non-GAAP EPS were -$0.08 for Q3 versus -$0.10 per share for the prior-year quarter. GAAP EPS were -$0.10 for Q3 versus -$0.14 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 51.6%, 30 basis points better than the prior-year quarter. Operating margin was -11.9%, 770 basis points better than the prior-year quarter. Net margin was -13.1%, 840 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $45.5 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $162.1 million. The average EPS estimate is -$0.05.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 106 members out of 118 rating the stock outperform, and 12 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give LTX-Credence a green thumbs-up, and two give it a red thumbs-down.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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