NVEC Earnings Prediction
The chart below shows how NVEC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NVEC sees a -1.09% change in stock price 10 days leading up to the earnings, and a +0.92% change 10 days following the report. On the earnings day itself, the stock moves by -1.22%. This data can give you a slight idea of what to expect for the next quarter's release.
NVEC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
7.08M
-44.65%
4.84%
Gross Margin
75.46%
-5.96%
-5.60%
Operating Margin
57.32%
-17.62%
-13.39%
Net Margin
53.83%
-16.32%
-13.08%
EPS
0.79
-53.53%
-9.20%
No Data Available
NVEC Earnings Analysis
NVE Corp Corporation (NVEC.O) Earnings Conference Call
Positive
Gross Margin Improvement: Gross margin for the quarter was 84%, an increase from 80% in the prior year quarter, attributed to a more profitable product mix and a larger portion of direct sales.
Strong Profitability Metrics: Net income for the quarter was $0.63 per share, with an operating margin of 58% and a net margin of 60%, indicating strong profitability metrics despite revenue challenges.
Strong Earnings Performance: For the first nine months of fiscal 2025, net income was $11,200,000, or $2.31 per diluted share, showcasing solid earnings performance year-to-date.
R&D Investment Commitment: R&D investment was significant, with 17% of revenue allocated to R&D in the past quarter, reflecting a commitment to new product development and innovation.
Lease Extension Agreement: A lease extension agreement was reached for an additional 62 months, including a $100,000 improvement allowance, supporting future expansion and operational capacity.
Negative
Quarterly Revenue Decline: Total revenue for the quarter ended December 31, 2024, decreased 25% compared to the quarter ended December 31, 2023, due to a 22% decrease in product sales and a 74% decrease in contract research and development revenue.
Expense Increase Analysis: Total expenses increased 40% for Q3 of fiscal 2025 compared to Q3 of fiscal 2024 due to a 61% increase in R&D and a 12% increase in SG&A.
Quarterly Net Income Decline: Net income for the quarter decreased 27% with a decrease in revenue, despite maintaining a gross margin of 84%.
Interest Income Decline: Interest income for Q3 of fiscal 2025 decreased 4% due to a decrease in marketable securities and lower yields on recently purchased marketable securities.
Revenue Decline Analysis: For the first 9 months of fiscal 2025, total revenue decreased 18% due to a 20% decrease in product sales, partially offset by a 72% increase in contract R&D.
NVEC FAQs
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NVEC Earning Call Sentiment
Earnings call transcript: NVE Corporation Q4 2024 sees strong margins despite revenue drop
NVEC.O
-2.18%Positive
The earnings call reveals significant challenges: a 25% revenue drop, increased expenses, and economic uncertainties. Despite a gross margin improvement and optimistic market demand outlook, the absence of a share repurchase program and concerns over inventory management, competitive pressures, and regulatory issues weigh heavily. The Q&A section highlights inventory gluts and vague responses on critical business areas, further dampening sentiment. These factors, coupled with decreased net income and increased expenses, suggest a negative stock price movement in the short term.