MTS Systems (MTSC) Misses Q1 EPS by 6c, Offers Outlook
- Nasdaq hits record high ahead of business activity data
- Bitcoin (BTC) Recovers to $34,000 as Analysts Insists Crypto Winter Won't Repeat Again
- Dollar slips after Fed's Powell downplays inflation fears
- Xpeng (XPEV) Leaps After Receiving a Green Light From Regulators to Raise Up To $2 Billion in Hong Kong IPO
- Cathie Wood's ARK Buys ~$77M in Bitcoin-Related Securities Yesterday on Dip
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
MTS Systems (NASDAQ: MTSC) reported Q1 EPS of $0.55, $0.06 worse than the analyst estimate of $0.61. Revenue for the quarter came in at $199.3 million versus the consensus estimate of $207.5 million.
For fiscal year 2017, with the higher backlog conversion rates in Test and more modest order levels in the first quarter, we will likely experience relatively flat to slightly lower revenue and earnings from the Test business this year. In addition to the added PCB business, we expect to see solid demand in our Sensors business, driven by market fundamentals and the resurgence of investment in the basic materials industries around the world.
Based on these factors, the company is forecasting revenues in the range of $760 million to $790 million and GAAP earnings per share of $0.80 to $1.20 for our fiscal year 2017. Also included in this guidance are acquisition integration, acquisition inventory fair value adjustment and restructuring expenses of $16.0 million to $18.0 million and the cost of the China investigation is expected to range between $8.0 million and $9.0 million. In addition, we are forecasting adjusted EBITDA for the full year to range between $115 million and $130 million. A reconciliation of this non-GAAP measure to net income, the closest GAAP measure, is included in Exhibit E of this earnings release.
Longer term, the PCB acquisition supports the strategic priorities of investing in markets with the opportunity to achieve sustainable double-digit top and bottom line growth, strengthening the MTS global footprint and focusing on areas that generate strong free cash flow. MTS has experienced the combined Sensors business for two full quarters and has a greatly expanded product portfolio delivered with outstanding customer service which will enhance the value of MTS to both customers and shareholders for years to come.
Dr. Graves concluded, "Although overall orders were down slightly in fiscal year 2016, there were many positives coming into fiscal year 2017. We are encouraged by the strong first quarter results of both the Test and Sensors businesses, and believe that our improved project execution and backlog conversion capability in Test, as well as our growing Test Service business, will position us well for the remainder of the year. Our Sensors business exposure to excellent fundamental market drivers such as industrial automation, testing of new products and energy generation, combined with an outstanding global customer base and delivery model, make us optimistic about the sustained growth prospects for our Sensors business this year and well into the future."
For earnings history and earnings-related data on MTS Systems (MTSC) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Patterson Cos. (PDCO) Misses Q4 EPS by 13c, Revenue Beats, Offers Guidance
- Wolverine World Wide (WWW) announces Brendan Hoffman will also become CEO at end of the year
- Stifel Resumes Mednax (MD) at Hold
Create E-mail Alert Related CategoriesEarnings, Guidance, Management Comments
Related EntitiesEarnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!