NVE Corp (NVEC) Beats Earnings & Revenue Estimates In Q3

NVE Corporation NVEC reported third-quarter fiscal 2017 earnings of 72 cents per share, surpassing the Zacks Consensus Estimate of 64 cents by 12.5%. Quarterly earnings were also higher than the year-ago quarter figure of 53 cents.

Total Revenue

In the quarter under review, total revenue came in at $7.46 million, surpassing the Zacks Consensus Estimate of $7 million by 6.6%.

Moreover, reported revenues jumped 23.9% year over year primarily driven by a 42% surge in product sales, partially offset by a 65% plunge in contract research and development revenues.

NVE Corp. Price, Consensus and EPS Surprise

NVE Corp. Price, Consensus and EPS Surprise | NVE Corp. Quote

Quarterly Highlights

NVE Corp.’s gross profit was $5.95 million, up 32.2% from $4.50 million a year ago.

Total expenses increased 6.1% year over year to $1.21 million primarily due to higher selling, general and administrative, and research and development expenses.

Interest income in the reported quarter was $0.39 million, down 15.6% mainly due to lower interest-bearing marketable securities.

Financial Position

As of Dec 31, 2016, NVE Corp. had cash and cash equivalents of $3.79 million, compared with $7.53 million as of Mar 31, 2016.

Price Movement

Over the last one year, NVE Corp. has underperformed the Zacks categorized Electronics Semiconductors industry. The company’s shares gained 38.3%, compared with the industry’s return of 73.6%.

Upcoming Peer Releases

Applied Optoelectronics, Inc. AAOI is expected to release fourth-quarter 2016 earnings on Feb 23. The Zacks Consensus Estimate for the quarter is pegged at 63 cents.

Broadcom Limited AVGO is expected to release fourth-quarter 2016 earnings on Mar 2. The Zacks Consensus Estimate for the quarter is pegged at $3.02.

Infineon Technologies AG IFNNY is expected to release fourth-quarter 2016 earnings on Feb 2. The Zacks Consensus Estimate for the quarter is pegged at 19 cents.

Zacks Rank

NVE Corp. currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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