The 10-second takeaway
For the quarter ended June 30 (Q2), KVH Industries beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins expanded across the board.
KVH Industries logged revenue of $43.2 million. The two analysts polled by S&P Capital IQ expected revenue of $39.3 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $32.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.15. The two earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. Non-GAAP EPS of $0.15 for Q2 were 400% higher than the prior-year quarter's $0.03 per share. GAAP EPS of $0.10 for Q2 were 233% higher than the prior-year quarter's $0.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 41.7%, 280 basis points better than the prior-year quarter. Operating margin was 5.3%, 240 basis points better than the prior-year quarter. Net margin was 3.6%, 220 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $37.6 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $155.0 million. The average EPS estimate is $0.42.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 48 members out of 58 rating the stock outperform, and 10 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give KVH Industries a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KVH Industries is buy, with an average price target of $16.50.
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