Electronics for Imaging Beats on Both Top and Bottom Lines

Electronics for Imaging (Nasdaq: EFII  ) reported earnings on April 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Electronics for Imaging beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share stayed the same.

Gross margins shrank, operating margins expanded, net margins dropped.

Revenue details
Electronics for Imaging recorded revenue of $160.1 million. The three analysts polled by S&P Capital IQ predicted a top line of $155.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $140.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.30. The three earnings estimates compiled by S&P Capital IQ predicted $0.28 per share on the same basis. GAAP EPS of $0.13 were the same as the prior-year quarter.

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 54.8%, 140 basis points worse than the prior-year quarter. Operating margin was 5.5%, 50 basis points better than the prior-year quarter. Net margin was 3.9%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $157.3 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $660.3 million. The average EPS estimate is $1.30.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 50 members out of 61 rating the stock outperform, and 11 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Electronics for Imaging a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Electronics for Imaging is buy, with an average price target of $20.67.

Looking to profit from the makers of computer hardware? You may be missing something obvious about where the money will be made in the tech industry of the future. Is Electronics for Imaging on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

• Add Electronics for Imaging to My Watchlist.