Mercury Systems reports Q3 EPS (26c), consensus (2c)

Reports Q3 revenue $208.3M, consensus $214.32M. Total bookings for Q3 were $219.9M, yielding a book-to-bill ratio of 1.06 for the quarter. “In the third quarter of fiscal year 2024, we made solid progress in each of our four priority focus areas which included continuing the shift of development to production programs delivering mission-critical processing to the edge; expanding our record backlog to nearly $1.3B, up 17% year over year; further leaning our cost structure as we integrate and streamline our operations; and reversing the multi-year trend of growth in working capital, down 8.0% year over year,” said Bill Ballhaus, Mercury’s CEO. “Similar to the first half, the majority of our business continues to perform predictably and consistent with expectations, with what we believe to be transitory impacts largely constrained to one subset of our portfolio. As we continue to make progress this year, we expect to enter FY25 with a clearer path to deliver predictable organic growth, expanding margins, and strong cash flow, and continue to set our sights on delivering above-average industry growth and profitability over the longer term.”