Universal Electronics (NASDAQ: UEIC) reported Q1 EPS of $0.89, $0.03 better than the analyst estimate of $0.86. Revenue for the quarter came in at $150.7 million versus the consensus estimate of $155.92 million.

Financial Results for the Three Months Ended March 31: 2021 Compared to 2020

• GAAP net sales were $150.5 million, compared to $151.8 million; Adjusted Non-GAAP net sales were $150.7 million, compared to $152.0 million.
• GAAP gross margins were 30.8%, compared to 28.3%; Adjusted Non-GAAP gross margins were 31.4%, compared to 30.9%.
• GAAP operating income was $8.6 million, compared to $8.0 million; Adjusted Non-GAAP operating income was $15.7 million, compared to $15.0 million.
• GAAP net income was $7.0 million, or $0.49 per diluted share, compared to $5.8 million or $0.41 per share; Adjusted Non-GAAP net income was $12.6 million, or $0.89 per diluted share, compared to $11.5 million, or $0.81 per diluted share.
• At March 31, 2021, cash and cash equivalents were $55.4 million.

“During the first quarter of 2021, we continued to leverage our strengths - technology innovation, strong customer relations, and operational excellence - to deliver solid financial results as guided,” said Paul Arling, UEI’s chairman and CEO. “Our wireless control technologies lead the industry as evidenced by numerous accolades for our voice control, QuickSet® and other connectivity solutions. More importantly, our advanced technology secures repeat customers and creates new opportunities. For example, LG, having relied upon UEI technology for several generations of their industry-leading smart TV interface, has once again selected us, and QuickSet will be the discovery, set-up and control standard for LG’s new webOS platform.

“As consumer choices continue to expand, so do our markets in home entertainment and automation as well as the new niche catering to their convergence. Our smarter living solutions consistently capture the imagination of the growing pool of cable, satellite, telecom, and new streaming service operators; OEM brands; and integrators. Our customers continue to be deeply committed to the design and production of their advanced technology solutions, enabling us to work closely with them to manage the impact of near-term component challenges while continuing to drive toward long-term design, development, and production objectives. Our focus is on the future, and we are confident we will continue to exceed customer and end-consumer expectations to drive long-term stakeholder value.”

GUIDANCE:

Universal Electronics sees Q2 2021 EPS of $0.87-$0.97, versus the consensus of $1.05. Universal Electronics sees Q2 2021 revenue of $153-163 million, versus the consensus of $166.84 million.

For the second quarter of 2021, the company expects GAAP net sales to range between $153 million and $163 million, compared to $153.1 million in the second quarter of 2020. GAAP earnings per diluted share for the second quarter of 2021 are expected to range from $0.44 to $0.54, compared to a GAAP earnings per diluted share of $1.02 in the second quarter of 2020.

For the second quarter of 2021, the company expects Adjusted Non-GAAP net sales to range between $153 million and $163 million, compared to $153.3 million in the second quarter of 2020. Adjusted Non-GAAP earnings per diluted share are expected to range from $0.87 to $0.97, compared to Adjusted Non-GAAP earnings per diluted share of $0.89 in the second quarter of 2020. The second quarter 2021 Adjusted Non-GAAP earnings per diluted share estimate excludes $0.43 per share related to, among other things, excess manufacturing overhead costs, stock-based compensation, amortization of acquired intangibles, changes in contingent consideration relating to acquisitions, litigation costs, foreign currency gains and losses and the related tax impact of these adjustments. For a more detailed explanation of Non-GAAP measures, please see the Use of Non-GAAP Financial Metrics discussion and the Reconciliation of Adjusted Non-GAAP Financial Results, each located elsewhere in this press release.

The company continues to believe in its long-term growth targets of sales between 5% and 10% and EPS between 10% and 20%.

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