MTS Systems Corp. (NASDAQ:MTSC) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
MTS Systems Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share were the same at $0.69 in the quarter as EPS of $0.69 in the year-earlier quarter.
Revenue: Rose 6.11% to $136.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: MTS Systems Corp. reported adjusted EPS income of $0.69 per share. By that measure, the company missed the mean analyst estimate of $0.86. It beat the average revenue estimate of $135 million.
Quoting Management: “Our second quarter results reflect a number of factors: the impact of continued soft industrial and mobile-equipment market conditions in Sensors and order timing delays in Test; solid revenue growth, driven by Test, in the range of what we expected; a larger mix of lower-margin, first-of-a-kind, custom projects; higher operating costs, including currency; and our ongoing investments in MTS’ ability to scale to meet the significant growth opportunities ahead of us,” said Dr. Jeffrey Graves, President and Chief Executive Officer of MTS. “We have intentionally accelerated the company’s pace to build a scalable enterprise so we can capitalize on opportunities in emerging markets and the wave of industrial, manufacturing and infrastructure demand we believe is now occurring for our products and services. These long-term trends and catalysts remain compelling but we did experience some short-term implementation challenges in the second quarter. We continue to be optimistic about MTS’ future growth potential and are committed to making the investments necessary to capture it.”
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