Mercury Systems Set to Release Q2 Earnings on February 3rd
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy MRCY?
Source: seekingalpha
- Earnings Announcement: Mercury Systems (MRCY) is scheduled to announce its Q2 fiscal year 2023 earnings on February 3rd after market close, with consensus EPS estimate at $0.06, reflecting a 14.3% year-over-year decline, which could negatively impact investor sentiment.
- Revenue Decline: The expected revenue for the quarter is $211.35 million, down 5.3% year-over-year, indicating challenges the company faces in the current economic environment that may affect future growth potential.
- Historical Performance Review: Over the past two years, Mercury Systems has beaten EPS estimates 63% of the time and revenue estimates 75% of the time, although recent downward revisions in EPS and revenue forecasts indicate growing market concerns about its future performance.
- Market Reaction: In the last three months, there have been no upward revisions to EPS estimates, with 7 downward adjustments, and similarly, revenue estimates have seen 8 downward revisions, suggesting a weakening analyst confidence that could lead to stock price volatility.
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Analyst Views on MRCY
Wall Street analysts forecast MRCY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MRCY is 81.20 USD with a low forecast of 49.00 USD and a high forecast of 102.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 79.070
Low
49.00
Averages
81.20
High
102.00
Current: 79.070
Low
49.00
Averages
81.20
High
102.00
About MRCY
Mercury Systems, Inc. is a technology company that delivers mission-critical processing power to the edge where signals and data are collected to solve the most pressing aerospace and defense challenges. The Mercury Processing Platform is the unique advantage the Company provides to its customers. It comprises the technologies the Company has developed and acquired that bring integrated, mission-critical processing capabilities to the edge. Its processing platform spans the full breadth of signal processing from the RF front end to the human-machine interface to rapidly convert meaningful data, gathered in the most remote and hostile environments, into critical decisions. It allows the Company to offer standard products and custom solutions from silicon to system scale, including components, modules, subsystems, and systems, and it embodies the customer-centric approach the Company takes to delivering capabilities that are mission-ready, secure, software-defined, and open and modular.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Bookings and Backlog: Q2 bookings totaled $288 million, an 18.6% year-over-year increase, resulting in a book-to-bill ratio of 1.23, with total backlog reaching a record $1.5 billion, indicating strong future revenue potential.
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