Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, December 1, 2017

Article Excerpt

MTS SYSTEMS CORP., $55.40, Nasdaq symbol MTSC, makes equipment and software that manufacturers use to test the behaviour of materials, machines and structures. It also makes sensors for industrial equipment. In the company’s 2017 fourth quarter, ended September 30, 2017, sales fell 6.2%, to $201.5 million from $214.8 million a year earlier. A 14.6% drop in revenue from testing products (62% of the total) offset an 11.7% revenue gain for sensors (38%). Most of the revenue gain for the sensors business stems from MTS’s purchase of PCB Group Inc. in July 2016 for $580.0 million. PCB makes sensors and instruments for measuring pressure, load, torque, shock and vibrations. Despite the overall sales decline, MTS’s revenue in the latest quarter still beat the consensus forecast of $194.5 million. The company recently completed its investigation of certain executives at its Chinese operations. Specifically, those individuals who formed a new firm to directly compete with it. In response, MTS has tightened its oversight procedures. If you exclude…