MTS Systems (MTSC) Misses Q4 EPS by 1c, Provides FY15 Outlook
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MTS Systems (NASDAQ: MTSC) reported Q4 EPS of $0.71, $0.01 worse than the analyst estimate of $0.72. Revenue for the quarter came in at $143.1 million versus the consensus estimate of $142.7 million.MTS Systems reaffirmed FY2014 guidance.
"Looking at 2014 as a whole, there are many positives to build from and they provide us with confidence about 2015 and beyond," Dr. Graves said. "We posted record orders in both Test and Sensors, exceeding $600 million for the first time. Our order backlog stands at a record high and our opportunity pipeline of potential new orders remains healthy. In Test, our order flow is confirming the macro trends we see with growing demand in the ground vehicles and materials markets. More specifically in the automotive industry, global growth is expected to be robust including rapid growth in China with the expansion of their middle class, as well as the global demand for better environmental profiles through improved fuel efficiency, lower emissions, and improved ride and handling performance expectations. In aerospace, fuel efficiency and emissions are also factors as we continue to see high demand for lighter and stronger airframe and propulsion materials.
"In Sensors, we expect continued strong demand in 2015 as more OEMs upgrade to make their products "smart." In order to do that, they need our advanced sensing technology. We believe this is a trend that is gaining momentum as manufacturers find new applications as well as upgrade current machinery," said Dr. Graves.
Dr. Graves concluded, "As we improve the execution of the Test business through optimization of our engineering, production and service processes that is currently in progress, we expect revenue for the 2015 fiscal year to be between $615 million to $645 million and earnings per share to be $3.60 to $4.00 per share. Based on the Test backlog mix and the timing of operational improvements, we anticipate revenue and earnings per share in the first half of the year will be less than the second half of the year. We believe that the Company's overall performance metrics, including gross margin expansion, will improve going forward as our custom and standard product mix normalizes and as we scale our operational processes and capacity to accommodate today's record order rates. Our continued strong orders performance in both the Test and Sensors businesses, combined with our record backlog, position us well for accelerated growth and improving profitability as we move into fiscal 2015."
(Street sees FY15 EPS of $3.79 on revenue of $607.80 million)
For earnings history and earnings-related data on MTS Systems (MTSC) click here.
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