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Mar 27, 2020
Mercury Q3 2020 Earnings Report
Mercury Systems' third quarter results for fiscal year 2020 were reported, demonstrating record bookings, revenue, net income, EPS, and backlog.
Key Takeaways
Mercury Systems reported record third-quarter fiscal year 2020 results, with revenue increasing by 19% year-over-year to $208.0 million. The company achieved record bookings of $250.3 million, resulting in a book-to-bill ratio of 1.20. GAAP net income was $23.6 million, or $0.43 per share, compared to $14.1 million, or $0.29 per share, for the third quarter of fiscal 2019.
Record bookings of $250 million, a 32% increase over the prior year.
Record revenue increased 19% over the prior year, with 11% organic growth.
Record net income, adjusted EBITDA, EPS, and adjusted EPS were achieved.
Record backlog increased 38% over the prior year.
Mercury
Mercury
Forward Guidance
For the fourth quarter of fiscal 2020, Mercury Systems forecasts revenues to be in the range of $205.8 million to $215.8 million and GAAP net income to be approximately $17.6 million to $19.8 million, or $0.32 to $0.36 per share. Adjusted EPS is expected to be in the range of $0.54 to $0.58 per share.
Positive Outlook
- Revenue forecasted to be in the range of $205.8 million to $215.8 million.
- GAAP net income expected to be approximately $17.6 million to $19.8 million.
- Adjusted EBITDA expected to be in the range of $46.4 million to $49.4 million.
- Adjusted EPS is expected to be in the range of $0.54 to $0.58 per share.
- Full fiscal year revenue expected to be $785.0 million to $795.0 million.
Challenges Ahead
- Actual performance could differ materially from estimates.
- Estimates are subject to risks including those listed in the Safe Harbor Statement.
- GAAP net income for the fourth quarter is expected to be approximately $17.6 million to $19.8 million, or $0.32 to $0.36 per share, assuming no incremental expenses.
- Effective tax rate, excluding discrete items, of approximately 26%.
- Approximately 55.2 million weighted average diluted shares outstanding.