Electronics for Imaging Inc. Earnings: Margins Suffer as Costs Rise, Profit Falls
Rising costs hurt Electronics for Imaging Inc. (NASDAQ:EFII) in the first quarter as profit dropped from a year earlier. 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 Earnings Cheat Sheet for the First Quarter
Results: Net income for Electronics for Imaging Inc. fell to $6.2 million (13 cents per share) vs. $6.2 million (13 cents per share) a year earlier. This is a decline of 0.2% from the year-earlier quarter.
Revenue: Rose 14.3% to $160.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Electronics for Imaging Inc. reported adjusted net income of 30 cents per share. By that measure, the company beat the mean estimate of 19 cents per share. It beat the average revenue estimate of $154.8 million.
Quoting Management: “Our team delivered another great quarter, marking EFI’s ninth consecutive quarter of double-digit revenue growth, along with record inkjet, software, and recurring revenues,” said Guy Gecht, CEO of EFI. “We are very pleased with the solid execution in our seasonally low quarter and ahead of the industry’s largest tradeshow. At drupa we are set to unveil some amazing new technology that enables our customers to transform their businesses to target the growth areas of print and optimize their operations.”
The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 17.1%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 26.4% from the year earlier quarter.
Gross margin shrank 1.4 percentage points to 54.8%. The contraction appeared to be driven by increased costs, which rose 18% from the year earlier quarter while revenue rose 14.3%.
The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 30 cents versus a mean estimate of net income of 28 cents per share.
Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 18 cents per share, down from 24 cents ninety days ago. The average estimate for the fiscal year is 89 cents per share, down from $1.06 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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