Electronics for Imaging Earnings: Beats the Street on Profit Rise

Electronics for Imaging Inc. (NASDAQ:EFII) reported net income above Wall Street’s expectations for the third quarter. Electronics For Imaging deals in color digital print controllers, super-wide format printers, and inks and print management solutions.

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Electronics for Imaging Inc. Earnings Cheat Sheet

Results: Net income for Electronics for Imaging Inc. rose to $13.4 million (28 cents per share) vs. $6.1 million (13 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 4.6% to $154.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Electronics for Imaging Inc. beat the mean analyst estimate of 22 cents per share. It fell short of the average revenue estimate of $162.4 million.

Quoting Management: “Another very strong quarter by our Industrial Inkjet business coupled with continued double-digit growth in our Productivity Software business led to solid results for Q3 despite the softness in Europe. For the first time, Industrial Inkjet represented over 50% of total EFI revenues, while at the same time the continued high growth of ink volume shows that our customers are also enjoying a similar business expansion,” said Guy Gecht, Chief Executive Officer of EFI. “As we begin a major new product cycle across our entire product portfolio, EFI’s innovation continues to help customers drive growth and efficiency in their business, which is crucial to our industry, especially in today’s environment.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 16.1% to $163.9 million in the second quarter. The figure rose 14.3% in the first quarter from the year earlier and climbed 12.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

For three consecutive quarters, the company has topped analyst estimates. It beat the mark by one cent in the second quarter and by 2 cents in the first quarter.

Net income has increased 40.2% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than twofold from the year-earlier quarter.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the fourth quarter is 21 cents per share, dropping from 23 cents a month ago. In the past month, the average estimate for the fiscal year has fallen from 99 cents per share to 93 cents.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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