Mercury Systems Inc (NASDAQ:MRCY)
Mercury Systems, Inc., a national company that provides secure processing subsystems for various critical defense and intelligence programs yesterday reported their fiscal second quarter 2017 financial results. Mercury reported second quarter earnings of 40.30 per share which beat analyst estimates of $0.10 per share. Mercury reported second quarter revenues of $98 million which beat analyst estimates of $93 million.
Mercury Systems, Inc. CEO’s Comments
Mark Aslett, Mercury’s President and Chief Executive Officer said,
The business continued to perform extremely well in the second quarter of fiscal 2017.
During the quarter we delivered a very strong financial performance with bookings, backlog, revenue, and adjusted EBITDA all reaching record levels. Year-over-year revenues grew more than 60% and adjusted EBITDA grew over 80%, landing within our recently updated target business model. We also completed the acquisition of CES, significantly expanding our addressable market with important, complementary capabilities in mission computing, safety-critical avionics and platform management. Based on our strong year-to-date performance, the continued success of our integration activities and strong backlog, we are raising our guidance for the full fiscal year. Globe Newswire
MRCY Technical Analysis
MRCY opened trading yesterday at $30.89 which was down from the previous day’s trading close of $31.14. MRCY closed trading yesterday at $31.44 and spiked up after market to $34.25, equivalent to a 9% increase from the closing price. Taking a look at the daily chart we can see that the last time MRCY traded above these levels we have to go all the way back to the month of January 2002 when it traded at $36.36. Taking a closer look at the daily chart we can see that before the spike up MRCY had already been in an overall upward trend dating back to October 21st, 2016 when it traded at $23.63.
MRCY has a float of 39.33 million shares and traded 1.25 times the normal daily trading volume on Monday. For trading purposes, I would like to see MRCY open trading on Tuesday above $33.30 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.30 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Mercury Systems, Inc. provides secure processing subsystems for various critical defense and intelligence programs in the United States. The company’s products and solutions are deployed in approximately 300 programs with 25 defense prime contractors. Its principal programs include Aegis, Patriot, Surface Electronic Warfare Improvement Program, Gorgon Stare, Predator, F-35, and Reaper.
The company also designs, markets, and licenses software and middleware environments under the MultiCore Plus name to accelerate development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. In addition, it offers hardware products, such as signal and image processing, multi-computer, and sensor interfaces, including embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, high-density memory modules, secure solid-state drives, secure GPS receiver modules, and chassis-based systems; radio frequency (RF) and microwave assemblies, such as tuners, converters, transceivers, and switch filters; and RF and microwave components, which include power amplifiers and limiters, switches, oscillators, and equalizers.
The company was formerly known as Mercury Computer Systems, Inc. and changed its name to Mercury Systems, Inc. in November 2012. Mercury Systems, Inc. was founded in 1981 and is headquartered in Chelmsford, Massachusetts.