Aeroflex Holding Beats Up on Analysts Yet Again

Aeroflex Holding (NYSE: ARX  ) reported earnings on Feb. 9. 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 loss per share dropped.

Gross margins dropped, operating margins contracted, net margins improved.

Revenue details
Aeroflex Holding booked revenue of $171.1 million. The six analysts polled by S&P Capital IQ predicted revenue of $165.2 million on the same basis. GAAP reported sales were 5.8% lower than the prior-year quarter's $181.6 million.

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

EPS details
Non-GAAP EPS came in at $0.15. The seven earnings estimates compiled by S&P Capital IQ averaged $0.12 per share on the same basis. GAAP EPS were -$0.01 for Q2 against -$0.15 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 50.1%, 210 basis points worse than the prior-year quarter. Operating margin was 5.4%, 510 basis points worse than the prior-year quarter. Net margin was -0.3%, 600 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $177.7 million. On the bottom line, the average EPS estimate i! s $0.16.

Next year's average estimate for revenue is $711.5 million. The average EPS estimate is $0.70.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 24 members out of 34 rating the stock outperform, and 10 members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Aeroflex Holding a green thumbs-up, and one 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 $14.42.

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