Tessco Technologies (TESS) Reports Q1 EPS of $0.13, Revenues Beat

Tessco Technologies (NASDAQ: TESS) reported Q1 EPS of $0.13, versus $0.00 reported last year. Revenue for the quarter came in at $150.9 million versus the consensus estimate of $142.18 million.

First-Quarter Highlights:

• Revenue of $150.9 million, up 8% year over year
• Revenue growth of 52% in the public carrier market compared with prior-year first quarter
• Gross profit growth combined with overall expense management contributed to operating margin of 1.2%, compared with 0.9% in the prior-year first quarter
• Diluted earnings per share grew 63% year over year to $0.13, representing the sixth consecutive quarter of year over year EPS growth
• Declared quarterly dividend of $0.20 per share

“I’m excited to report that during the first quarter, we continued our recent trend of growing revenue and earnings,” said Murray Wright, President and Chief Executive Officer. “We executed well on our strategic plan again this quarter. The initiatives we put in place during the past year, and the technology, marketing and sales actions, are resulting in improved performance, establishing a firm foundation for our future growth. First-quarter revenue grew 8% year over year, and we have now achieved year over year growth in six of the past seven quarters. Revenue in our commercial markets grew 16% year over year, including impressive 52% growth in the carrier ecosystem. Our new customer relationships, including those with MasTec and Verizon, have significantly grown our market share. Accordingly, as carriers are increasing their activity levels, we are seeing significant revenue growth, and we are well positioned as the FirstNet project continues and 5G buildouts begin later this year. On the bottom line, earnings per share of $0.13 grew from $0.08 in the year-ago quarter, resulting from the growth in sales and gross profit and our improved operating leverage.

“We remain focused on balancing the implementation of our go-to-market strategy with increased operating efficiency,” Wright continued. “Due to projected increases in carrier activity, as well as anticipated growth across both the commercial and retail businesses, we expect accelerated growth in revenue and profitability during the remainder of fiscal 2019.”

For earnings history and earnings-related data on Tessco Technologies (TESS) click here.

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