MRCY Earnings Prediction
The chart below shows how MRCY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MRCY sees a +1.08% change in stock price 10 days leading up to the earnings, and a +4.73% change 10 days following the report. On the earnings day itself, the stock moves by -0.18%. This data can give you a slight idea of what to expect for the next quarter's release.
MRCY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
197.46M
-13.99%
9.10%
Gross Margin
9.75%
-66.80%
-53.53%
Operating Margin
-27.19%
1273.23%
65.79%
Net Margin
-23.08%
384.87%
13.81%
EPS
-0.79
-315.79%
23.44%
No Data Available
MRCY Earnings Analysis
Mercury Systems Inc Corporation (MRCY.O) Earnings Conference Call
Positive
Strong Demand and Backlog: Bookings of $242 million with a trailing book to bill of 1.12, indicating strong demand and a record backlog of $1.4 billion, up 6% year over year.
Revenue Increase Analysis: Revenue of $223 million, reflecting a 13% increase year over year, driven by a $29 million increase in point in time revenue due to accelerated customer deliveries.
EBITDA Improvement and Efficiency: Adjusted EBITDA of $22 million, with an adjusted EBITDA margin of 9.9%, both significantly improved year over year, showcasing operational efficiency and margin expansion.
Strong Free Cash Flow Growth: Record free cash flow of $82 million, up $44 million year over year, driven by improved cash provided by operating activities, indicating strong cash generation capabilities.
Cost Management Success: Operating expenses decreased by approximately $12 million year over year, primarily due to lower R&D and SG&A expenses, reflecting effective cost management strategies.
Negative
Net Loss Comparison Q2: GAAP net loss of $18,000,000 in Q2 compared to a loss of $46,000,000 in the same quarter last year, indicating ongoing financial challenges despite improvements in revenue.
Margin Expansion Challenges: Adjusted EBITDA margin of 9.9% remains below the targeted low to mid-twenty percent range, reflecting insufficient margin expansion efforts.
Backlog Margin Concerns: The current backlog margin is lower than expected due to a small number of low-margin development programs, which could hinder future profitability.
Free Cash Flow Outlook: Free cash flow is expected to be around breakeven in the second half of FY 2025, indicating potential cash flow constraints despite a strong Q2 performance.
Adjusted EBITDA Margin Outlook: The company anticipates low double-digit adjusted EBITDA margins for FY 2025, suggesting continued pressure on profitability as lower-margin development efforts are completed.
MRCY FAQs
How does MRCY typically perform around its earnings report dates?
Is Mercury Systems Inc (MRCY) Q2 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
MRCY Earning Call Sentiment
Earnings call transcript: Mercury Systems Q2 2024 beats expectations
MRCY.O
-0.35%Positive
The earnings call shows mixed signals: solid financial performance with record free cash flow and improved margins, but challenges remain with regulatory scrutiny and supply chain issues. The Q&A reveals management's confidence in strategic positioning but lacks clarity on future margin improvements, causing uncertainty. Given the market cap, this likely results in a neutral stock price movement, as positive factors balance out the uncertainties.
