LTX-Credence Earnings: Here’s Why Investors Don’t Like These Results

LTX-Credence Corporation (NASDAQ:LTXC) had a loss and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.82%.

LTX-Credence Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.07 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Decreased 13.71% to $37.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: LTX-Credence Corporation reported adjusted EPS loss of $0.07 per share. By that measure, the company met the mean analyst estimate of $-0.07. It missed the average revenue estimate of $38.09 million.

Quoting Management: Dave Tacelli, chief executive officer and president, commented, “Our fourth quarter results were in line with our expectations. While there are specific market segments showing increasing business levels, a broad based recovery in our industry has yet to materialize. However, if the trends we see in certain market segments continue, we expect calendar year 2014 to be a growth year for the industry and our test business.”

Key Stats (on next page)…

Revenue increased 3.42% from $36.26 million in the previous quarter. EPS increased to $-0.07 in the quarter versus EPS of $-0.08 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.05 and has not changed. For the current year, the average estimate is a loss of $0.21, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)