MTS Systems (MTSC) Tops Q2 EPS by 1c, Lowers FY15 Guidance

MTS Systems (NASDAQ: MTSC) reported Q2 EPS of $0.77, $0.01 better than the analyst estimate of $0.76. Revenue for the quarter came in at $114 million versus the consensus estimate of $148.1 million.

MTS Systems sees FY2015 EPS of $3.00-$3.20, versus the consensus of $3.81. MTS Systems sees FY2015 revenue of $565-580 million, versus the consensus of $609.89 million.

Outlook

"In Test, our large order flow and pipeline expansion continues to confirm the macro trends driving investments by our customers in new product development capabilities, with particular near-term strength continuing in Asia. In Sensors, we expect demand to improve as more OEMs develop smarter machines and vehicles using MTS sensor technology," said Dr. Graves. "We believe our second quarter performance, the operational improvements we are making in the Test business, and the strategic initiatives we are pursuing in both businesses position us very well for the future.

"While our end-markets remain strong, given the significant headwinds from the stronger U.S. dollar, particularly against the euro and the yen, and the continued higher mix of custom orders which, while decreasing on a sequential quarter basis, remains higher than expected this year, we are adjusting our fiscal year 2015 guidance for revenue down to a range of $565 million to $580 million and earnings per share to a range of $3.00 to $3.20. The negative impact from the stronger dollar directly accounts for approximately 70 percent of the reduction in revenue and 40 percent of the reduction in earnings per share. The remaining decrease is driven by the continued higher mix of custom orders and pricing pressures from the stronger dollar, offset in part by our productivity and efficiency initiatives combined with a strong cost focus across the business. We believe this range will more accurately reflect our operational performance given the expected impact of today's currency values and our business mix. In the interim, we will continue to enhance our product capabilities, improve our business processes and drive productivity improvements in Test as well as new product development in Sensors to drive the business forward for the remainder of this year and into fiscal 2016," Dr. Graves concluded.

For earnings history and earnings-related data on MTS Systems (MTSC) click here.

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