TeleCommunication Systems Inc. (NASDAQ:TSYS) delivered a profit 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 up 8.63%.
TeleCommunication Systems Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 33.33% to $0.04 in the quarter versus EPS of $0.06 in the year-earlier quarter.
Revenue: Decreased 5.24% to $94.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: TeleCommunication Systems Inc. reported adjusted EPS income of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.04. It missed the average revenue estimate of $102.07 million.
Quoting Management: “Our first quarter results were consistent with our expectations, as we worked to set the stage for another strong second half,” said Maurice B. Tose, TCS chairman and CEO. “We are executing on our strategy of using TCS expertise in secure digital wireless network technology to address the growing worldwide need for trustworthy communications.”
Key Stats (on next page)…
Revenue decreased 28.54% from $132.67 million in the previous quarter. EPS decreased 80% from $0.20 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.07 to a profit $0.05. For the current year, the average estimate has moved down from a profit of $0.33 to a profit of $0.28 over the last ninety days.
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)