What to Expect from LTX-Credence

LTX-Credence (Nasdaq: LTXC  ) is expected to report Q3 earnings on May 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict LTX-Credence's revenues will grow 23.8% and EPS will remain in the red.

The average estimate for revenue is $38.2 million. On the bottom line, the average EPS estimate is -$0.06.

Revenue details
Last quarter, LTX-Credence reported revenue of $35.0 million. GAAP reported sales were 45% higher than the prior-year quarter's $24.1 million.

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

EPS details
Last quarter, non-GAAP EPS came in at -$0.08. GAAP EPS were -$0.07 for Q2 against -$0.20 per share for the prior-year quarter.

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

Recent performance
For the preceding quarter, gross margin was 53.0%, 780 basis points better than the prior-year quarter. Operating margin was -12.1%, much better than the prior-year quarter. Net margin was -9.4%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $160.9 million. The average EPS estimate is -$0.08.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 106 members out of 118 rating the stock outperform, and 12 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give LTX-Credence 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 LTX-Credence is buy, with an average price target of $8.00.

Is LTX-Credence the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Add LTX-Credence to My Watchlist.