Mercury Systems (NASDAQ:MRCY) Posts Quarterly Earnings Results, Beats Expectations By $0.26 EPS

Key Points

• Mercury Systems reported quarterly earnings of $0.47 EPS, surpassing the consensus estimate of $0.21 by $0.26, while revenue increased by 9.9% year-over-year to $273.11 million.
• The company has a negative return on equity of 0.77% and a negative net margin of 7.33%, indicating some challenges despite the positive earnings surprise.
• Several research firms raised their price targets for Mercury Systems, with a consensus rating of "Moderate Buy" and a target price of $55.50.

Mercury Systems (NASDAQ:MRCY - Get Free Report) issued its quarterly earnings results on Monday. The technology company reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.26, Briefing.com reports. The company had revenue of $273.11 million for the quarter, compared to the consensus estimate of $244.56 million. Mercury Systems had a negative return on equity of 0.77% and a negative net margin of 7.33%. The firm's revenue was up 9.9% compared to the same quarter last year. During the same period last year, the business posted $0.23 earnings per share.

Mercury Systems Stock Performance

NASDAQ:MRCY opened at $63.47 on Tuesday. Mercury Systems has a 1 year low of $32.32 and a 1 year high of $57.87. The firm has a 50 day moving average of $52.01 and a 200-day moving average of $47.89. The company has a current ratio of 3.44, a quick ratio of 2.25 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $3.79 billion, a P/E ratio of -55.62, a price-to-earnings-growth ratio of 2.48 and a beta of 0.72.

Insider Activity

In related news, EVP Steven Ratner sold 1,839 shares of the business's stock in a transaction that occurred on Monday, June 16th. The shares were sold at an average price of $53.48, for a total value of $98,349.72. Following the completion of the transaction, the executive vice president owned 35,174 shares in the company, valued at $1,881,105.52. The trade was a 4.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Company insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC bought a new position in Mercury Systems in the 1st quarter worth approximately $755,000. Jane Street Group LLC raised its position in Mercury Systems by 161.3% in the 1st quarter. Jane Street Group LLC now owns 50,769 shares of the technology company's stock worth $2,188,000 after purchasing an additional 31,337 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Mercury Systems by 13.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 159,617 shares of the technology company's stock worth $6,878,000 after purchasing an additional 18,916 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in Mercury Systems by 51.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 855,441 shares of the technology company's stock worth $36,861,000 after purchasing an additional 290,989 shares during the last quarter. Institutional investors own 95.99% of the company's stock.

Wall Street Analyst Weigh In

MRCY has been the topic of several research analyst reports. Truist Financial raised their price target on Mercury Systems from $56.00 to $60.00 and gave the company a "buy" rating in a research report on Monday, June 2nd. The Goldman Sachs Group lifted their target price on Mercury Systems from $30.00 to $33.00 and gave the stock a "sell" rating in a research report on Monday, May 12th. Royal Bank Of Canada lifted their target price on Mercury Systems from $50.00 to $55.00 and gave the stock a "sector perform" rating in a research report on Thursday, July 3rd. Raymond James Financial raised Mercury Systems from an "outperform" rating to a "strong-buy" rating and lifted their target price for the stock from $55.00 to $80.00 in a research report on Tuesday. Finally, JPMorgan Chase & Co. lifted their target price on Mercury Systems from $48.00 to $56.00 and gave the stock a "neutral" rating in a research report on Monday, June 16th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, three have issued a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $55.50.

Mercury Systems Company Profile

Mercury Systems, Inc, a technology company, manufactures and sells components, products, modules, and subsystems for aerospace and defense industries in the United States, Europe, and the Asia Pacific. Its products and solutions are deployed in approximately 300 programs with 25 defense contractors and commercial aviation customers.

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