Mercury Systems (NASDAQ: MRCY) reported Q2 EPS of $0.54, $0.06 better than the analyst estimate of $0.48. Revenue for the quarter came in at $193.91 million versus the consensus estimate of $192.53 million.

GUIDANCE:

Mercury Systems sees Q3 2020 EPS of $0.50-$0.53, versus the consensus of $0.56. Mercury Systems sees Q3 2020 revenue of $190-200 million, versus the consensus of $205.55 million.

Mercury Systems sees FY2020 EPS of $2.09-$2.13, versus the consensus of $2.09. Mercury Systems sees FY2020 revenue of $780-795 million, versus the consensus of $787.06 million.

Business Outlook

This section presents our current expectations and estimates, given current visibility, on our business outlook for the current fiscal quarter and fiscal year 2020. It is possible that actual performance will differ materially from the estimates given, either on the upside or on the downside. Investors should consider all of the risks with respect to these estimates, including those listed in the Safe Harbor Statement below and in the Second Quarter Fiscal 2020 Earnings Presentation and in our periodic filings with the U.S. Securities and Exchange Commission, and make themselves aware of how these risks may impact our actual performance. Effective as of July 1, 2019, the Company's fiscal year has changed to the 52-week or 53-week period ending on the Friday closest to the last day in June. All references in this press release to the third quarter of fiscal 2020 are to the quarter ending March 27, 2020 and to fiscal 2020 are to the fiscal year ending July 3, 2020.

For the third quarter of fiscal 2020, revenues are forecasted to be in the range of $190.0 million to $200.0 million. GAAP net income for the third quarter is expected to be approximately $15.9 million to $17.4 million, or $0.29 to $0.32 per share, assuming no incremental restructuring, acquisition, other non-operating adjustments or non-recurring financing related expenses in the period, an effective tax rate, excluding discrete items, of approximately 26% and approximately 55.1 million weighted average diluted shares outstanding. Adjusted EBITDA for the third quarter of fiscal 2020 is expected to be in the range of $42.0 million to $44.0 million. Adjusted EPS is expected to be in the range of $0.50 to $0.53 per share.

For the full fiscal year 2020, we currently expect revenue of $780.0 million to $795.0 million, and GAAP net income of $71.7 million to $74.5 million, or $1.30 to $1.35 per share, assuming no incremental restructuring, acquisition, other non-operating adjustments or non-recurring financing related expenses in the period, an effective tax rate of approximately 26% for the remainder of the year, excluding discrete items, and approximately 55.1 million weighted average diluted shares outstanding. Adjusted EBITDA for the full fiscal year is expected to be approximately $172.5 million to $176.0 million, and adjusted EPS for the full fiscal year is expected to be approximately $2.09 to $2.13 per share.

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