Universal Electronics (NASDAQ: UEIC) reported Q1 EPS of $0.82, $0.09 better than the analyst estimate of $0.73. Revenue for the quarter came in at $182.7 million versus the consensus estimate of $181.29 million.

Paul Arling, UEI’s chairman and CEO, stated, “During the first quarter, based on solid execution across the board, we exceeded our bottom line expectations. Demand for the connected home remains strong, and entering the second quarter, we have a wider array of customers than ever. Leading companies across the world in telecom, consumer electronics, and traditional cable and satellite are developing, testing, and shipping advanced, 2-way, IP-connected home entertainment systems. Combined with our ongoing success in home automation, we are well positioned to deliver consistent and profitable growth.”

Financial Results for the Three Months Ended March 31: 2019 Compared to 2018

• GAAP net sales were $184.2 million, compared to $164.7 million; Adjusted Non-GAAP net sales were $182.7 million, compared to $165.2 million.
• GAAP gross margins were 21.7%, compared to 22.6%; Adjusted Non-GAAP gross margins were 25.8%, compared to 23.9%.
• GAAP operating income was $1.7 million, compared to $0.9 million; Adjusted Non-GAAP operating income was $14.6 million, compared to $6.1 million.
• GAAP net loss was $1.0 million, or $0.07 per share, compared to a net loss of $0.6 million or $0.04 per share; Adjusted Non-GAAP net income was $11.3 million, or $0.82 per diluted share, compared to $4.1 million, or $0.29 per diluted share.
• At March 31, 2019, cash and cash equivalents were $44.9 million.

Bryan Hackworth, UEI’s CFO, stated, “We are progressing as expected with the transition of approximately 40 percent of production volume from China to Mexico and the Philippines in an effort to offset the impact of the increased tariffs. We remain on track for this transition to be completed by this summer. Further, our 2019 strategic initiatives to streamline the business are beginning to improve operating efficiencies and are enabling us to invest in product innovation, technologies and new markets.”

GUIDANCE:

Universal Electronics sees Q2 2019 EPS of $0.70-$0.80, versus the consensus of $0.53. Universal Electronics sees Q2 2019 revenue of $178-188 million, versus the consensus of $168.82 million.

For earnings history and earnings-related data on Universal Electronics (UEIC) click here.