Aeroflex Holding Beats on Both Top and Bottom Lines

Aeroflex Holding (NYSE: ARX  ) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Aeroflex Holding beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew.

Gross margins increased, operating margins contracted, net margins expanded.

Revenue details
Aeroflex Holding recorded revenue of $156.2 million. The five analysts polled by S&P Capital IQ foresaw sales of $150.4 million on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $171.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.10. The five earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS were $0.01 for Q2 compared to -$0.01 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.6%, 50 basis points better than the prior-year quarter. Operating margin was 4.6%, 80 basis points worse than the prior-year quarter. Net margin was 0.5%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $154.2 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $622.4 million. The average EPS estimate is $0.41.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 23 members out of 31 rating the stock outperform, and eight members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give Aeroflex Holding a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aeroflex Holding is hold, with an average price target of $8.17.

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