The 10-second takeaway
For the quarter ended June 30 (Q2), KEYW Holding missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share dropped to a loss.
Margins contracted across the board.
KEYW Holding logged revenue of $78.3 million. The six analysts polled by S&P Capital IQ wanted to see net sales of $80.1 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $56.2 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 -$0.06. The five earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. GAAP EPS were -$0.06 for Q2 against $0.01 per share for the prior-year quarter.
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 32.7%, 100 basis points worse than the prior-year quarter. Operating margin was -3.8%, 550 basis points worse than the prior-year quarter. Net margin was -3.0%, 360 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $86.7 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $338.2 million. The average EPS estimate is -$0.04.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 29 members out of 32 rating the stock outperform, and three members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give KEYW Holding 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 KEYW Holding is buy, with an average price target of $18.17.
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