Mercury Systems (NASDAQ:MRCY) Announces Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Key Points

• Mercury Systems reported quarterly EPS of $0.37, missing analyst expectations by $0.01, while revenue of $289.78 million exceeded estimates of $266.09 million.
• Shares fell 7.4% to $105 during Tuesday trading, with volume significantly above average. The company posted a negative net margin of 1.46% and a return on equity of 2.22%.
• Analyst sentiment remains mixed, with the stock carrying an overall “Hold” rating and an average price target of $102; insiders own 1.4% of shares, while institutional investors and hedge funds hold 95.99%.

Mercury Systems (NASDAQ:MRCY - Get Free Report) announced its quarterly earnings results on Tuesday. The technology company reported $0.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($0.01), FiscalAI reports. The firm had revenue of $289.78 million for the quarter, compared to the consensus estimate of $266.09 million. Mercury Systems had a negative net margin of 1.46% and a positive return on equity of 2.22%.

Mercury Systems Stock Down 7.4%

Shares of NASDAQ MRCY traded down $8.36 during mid-day trading on Tuesday, hitting $105.00. The company had a trading volume of 1,796,434 shares, compared to its average volume of 658,098. The company has a current ratio of 3.19, a quick ratio of 2.15 and a debt-to-equity ratio of 0.40. The firm has a 50-day simple moving average of $108.80 and a two-hundred day simple moving average of $94.82. The company has a market capitalization of $6.30 billion, a PE ratio of -437.50 and a beta of 0.95. Mercury Systems has a one year low of $62.78 and a one year high of $128.45.

Insider Buying and Selling at Mercury Systems

In related news, Director Howard L. Lance sold 9,250 shares of the firm's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $99.76, for a total value of $922,780.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of MRCY. Osaic Holdings Inc. raised its stake in Mercury Systems by 53.2% in the second quarter. Osaic Holdings Inc. now owns 599 shares of the technology company's stock valued at $32,000 after buying an additional 208 shares during the period. Hollencrest Capital Management bought a new stake in Mercury Systems in the 4th quarter valued at $37,000. Federated Hermes Inc. acquired a new stake in Mercury Systems during the 2nd quarter valued at $43,000. EverSource Wealth Advisors LLC boosted its position in Mercury Systems by 33.7% during the second quarter. EverSource Wealth Advisors LLC now owns 929 shares of the technology company's stock worth $50,000 after purchasing an additional 234 shares during the period. Finally, Wexford Capital LP bought a new position in shares of Mercury Systems in the third quarter valued at about $66,000. 95.99% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on MRCY shares. Jefferies Financial Group reissued a "hold" rating and issued a $115.00 price target on shares of Mercury Systems in a research note on Friday, July 10th. Truist Financial upgraded Mercury Systems to a "strong-buy" rating in a research report on Friday, May 1st. Zacks Research cut Mercury Systems from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 4th. The Goldman Sachs Group lifted their price target on shares of Mercury Systems from $60.00 to $68.00 and gave the company a "sell" rating in a research note on Monday, May 11th. Finally, Wall Street Zen downgraded shares of Mercury Systems from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. Two analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $102.00.

Mercury Systems Company Profile

Mercury Systems, Inc NASDAQ: MRCY is a technology company that designs, manufactures and markets secure processing subsystems for aerospace and defense applications. The company's products are built to address the stringent security, safety and reliability requirements of mission-critical programs, with a focus on radar, electronic warfare, intelligence and other sensor and processing functions. Mercury's offerings encompass rugged embedded computing modules, high-performance radio frequency (RF) and microwave components, digital signal processing subsystems and secure networking solutions.

Since its origins in advanced signal processing, Mercury Systems has expanded its capabilities through a combination of internal development and targeted acquisitions.

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