National Instruments (NATI) Tops Q2 EPS by 17c, Revenues Miss; Offers 3Q EPS/Revenue Outlook

National Instruments (NASDAQ: NATI) reported Q2 EPS of $0.26, $0.17 better than the analyst estimate of $0.09. Revenue for the quarter came in at $301 million versus the consensus estimate of $304.45 million.

Q2 2020 Summary

• Revenue of $301 million, down 10 percent year over year and down 8 percent year over year on an organic basis
• GAAP gross margin of 71 percent
• Non-GAAP gross margin of 74 percent
• Fully diluted GAAP EPS of $0.08 and fully diluted non-GAAP EPS of $0.26
• GAAP net income of $11 million and non-GAAP net income of $34 million
• EBITDA of $33 million for second quarter
• Cash and short-term investments of $608 million as of June 30, 2020, a significant portion of which was used to fund the OptimalPlus acquisition on July 2, 2020

“I am proud of the ability of our employees to adapt as the COVID-19 pandemic continues globally. We delivered results within expectations shared June 9, 2020 and our operational continuity ensured we were able to meet customer demand,” said Eric Starkloff, NI CEO. “The core strengths of NI are clear — our broad customer base, diversity of business, and the value our customers see in our software-connected systems. I believe we are in a stronger position strategically as compared to past industrial recessions with a focus on the parts of the market where our customers continue to invest.”

“Although economic uncertainty remains, I am confident in our strategy and ability to maintain stability in the short-term while staying focused on our long-term growth ambitions,” said Karen Rapp, NI CFO. “We will continue to be diligent in managing expenses through the second half of 2020. We believe our strong balance sheet and cash position provides us the capability to keep our capital allocation priorities unchanged as we stay committed to shareholder value."

GUIDANCE:

National Instruments sees Q3 2020 EPS of $0.14-$0.28, versus the consensus of $0.16. National Instruments sees Q3 2020 revenue of $285-325 million, versus the consensus of $317.96 million.

NI currently expects Q3 GAAP revenue to be in the range of $283 million to $323 million and Q3 non-GAAP revenue, which adjusts for the impact of purchase price accounting related to OptimalPlus, to be in the range of $285 million to $325 million. The company currently expects that GAAP fully diluted EPS will be in the range of -$0.09 to $0.05 for Q3, with non-GAAP fully diluted EPS expected to be in the range of $0.14 to $0.28.

For earnings history and earnings-related data on National Instruments (NATI) click here.

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