Electronics for Imaging, Inc. Earnings Cheat Sheet: Fifth Straight Quarter of Expanding Margins, but Net Income Declines

Electronics for Imaging, Inc. (NASDAQ:EFII) reported its results for the third quarter. Electronics For Imaging deals in color digital print controllers, super-wide format printers, and inks and print management solutions.

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

Electronics for Imaging Earnings Cheat Sheet for the Third Quarter

Results: Net income for the computer peripherals company fell to $6.1 million (13 cents per share) vs. $13.4 million (29 cents per share) a year earlier. This is a decline of 54.2% from the year earlier quarter.

Revenue: Rose 14.1% to $147.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: EFII reported adjusted net income of 25 cents per share. By that measure, the company beat the mean estimate of 17 cents per share. Analysts were expecting revenue of $145.4 million.

Quoting Management: “The solid results across all of our business segments and geographies marked EFI’s seventh consecutive quarter of double-digit revenue growth, the eighth consecutive quarter of greater than 20% growth in UV ink volume, along with record software and recurring revenues,” said Guy Gecht, CEO of EFI. “We are pleased that yet again our results demonstrate that our strategy of targeting the growth segments of print with innovative products that deliver compelling ROI is working.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 22.8%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 28% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded two percentage points to 56.2% from the year earlier quarter. Over that span, margins have grown on average 2.7 percentage points per quarter on a year-over-year basis.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by 17 cents in the first quarter, and by 3 cents in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 26 cents per share from 24 cents. For the fiscal year, the average estimate has moved up from 70 cents a share to 79 cents over the last ninety days.

Competitors to Watch: Gerber Scientific, Inc. (NYSE:GRB), Canon Inc. (NYSE:CAJ), Xerox Corporation (NYSE:XRX), Sony (NYSE:SNE), Presstek, Inc. (NASDAQ:PRST), Hewlett-Packard Company (NYSE:HPQ) and Duoyuan Printing, Inc. (NYSE:DYP).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)