DTS Beats Estimates But Has a Big Earnings Drop

DTS (NAS: DTSI) reported earnings on March 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DTS missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
DTS reported revenue of $29.8 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $31.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.33. The eight earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. Non-GAAP EPS of $0.33 for Q4 were 37% lower than the prior-year quarter's $0.52 per share. GAAP EPS of $0.02 for Q4 were 95% lower than the prior-year quarter's $0.42 per share.

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 93.8%, 550 basis points worse than the prior-year quarter. Operating margin was -6.8%, much worse than the prior-year quarter. Net margin was 1.0%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $34.9 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $146.3 million. The average EPS estimate is $1.10.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 50 members out of 70 rating the stock outperform, and 20 members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give DTS a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DTS is hold, with an average price target of $17.88.

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The article DTS Beats Estimates But Has a Big Earnings Drop originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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