MTS Systems (MTSC) Reports Q4 EPS of $0.61, Revenues Miss

November 26, 2018 4:11 PM EST

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MTS Systems (NASDAQ: MTSC) reported Q4 EPS of $0.61, versus $0.00 reported last year. Revenue for the quarter came in at $197.88 million versus the consensus estimate of $202.72 million.

"We are very pleased with how we ended the fiscal year, with increasing momentum across both of our business segments. While the Test ground vehicles sector remains sluggish by historical measure, all other Test equipment sectors, as well as our Test services, were robust, leading to a 50-year record order level for the second half of fiscal 2018 in our Test business. This performance puts us in a solid position for growth and margin improvement for Test in the year ahead."

"Our Sensors business had an outstanding year, with record revenues and strong operating performance, driven by broad strength across our Sensors industrial and test sectors. As good as we felt about our execution in 2018, our positive outlook for the future was further reinforced with the award, late in our fourth quarter, of a new Sensors multi-year contract associated with the U.S. Department of Defense, valued at approximately $187 million inclusive of options in which we received an initial purchase order funded up to $20 million. This was the largest contract ever received in our Sensors business and one that we are extremely proud to have been awarded. With the strength we now see in our core markets for sensors globally, and with a record backlog as we closed our fiscal 2018, we anticipate continued double-digit revenuegrowth and increased profitability moving forward as we realize the efficiencies of scale that we now have in our Sensors business."

"In short, while the first half order challenges driven by the Test ground vehicles sector provided a headwind for full-year performance, the record order rates of the second half of the year, for both our Test and Sensors businesses, left us feeling very positive as we closed out our fiscal 2018. The resulting 50-year record backlog at year end, which topped $415 million, positions us well for growth and further margin expansion in fiscal 2019."

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

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