The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Mercury Systems's revenues will decrease -15.8% and EPS will shrink to a loss.
The average estimate for revenue is $51.2 million. On the bottom line, the average EPS estimate is -$0.09.
Last quarter, Mercury Systems reported revenue of $54.1 million. GAAP reported sales were 19% lower than the prior-year quarter's $67.0 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.
Last quarter, non-GAAP EPS came in at -$0.02. GAAP EPS of $0.03 for Q3 were 82% lower than the prior-year quarter's $0.17 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 preceding quarter, gross margin was 41.7%, much worse than the prior-year quarter. Operating margin was -2.2%, much worse than the prior-year quarter. Net margin was 1.5%, 630 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $204.6 million. The average EPS estimate is -$0.46.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 43 members out of 105 rating the stock outperform, and 62 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Mercury Systems a green thumbs-up, and 21 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercury Systems is outperform, with an average price target of $8.75.
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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.