NVE Misses on Revenues but Beats on EPS

NVE (Nasdaq: NVEC  ) reported earnings on Jan. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), NVE missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.

Margins expanded across the board.

Revenue details
NVE booked revenue of $6.5 million. The one analyst polled by S&P Capital IQ looked for sales of $6.8 million on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $6.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.60. The one earnings estimate compiled by S&P Capital IQ anticipated $0.58 per share. GAAP EPS of $0.60 for Q3 were 28% higher than the prior-year quarter's $0.47 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 73.4%, 870 basis points better than the prior-year quarter. Operating margin was 56.9%, 1,230 basis points better than the prior-year quarter. Net margin was 44.4%, 720 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $8.5 million. On the bottom line, the average EPS estimate is $0.72.

Next year's average estimate for revenue is $28.6 million. The average EPS estimate is $2.50.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 278 members out of 374 rating the stock outperform, and 96 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give NVE a green thumbs-up, and 50 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVE is buy, with an average price target of $61.00.

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