) has posted several positive earnings surprises and is now a Zacks
#1 Rank (Strong Buy).
Monotype Imaging Holdings Inc., through its subsidiaries, provides
end-user and embedded text imaging solutions for use in print, Web
and mobile environments that enable people to create content on
various devices worldwide. It offers a collection of approximately
14,000 typefaces consisting of owned and licensed fonts; monotype,
linotype, and ITC typeface libraries; custom font design services
for corporate branding and identity purposes; and PCL 6 and
PostScript 3 font collections. The company's customers include
consumer electronic device manufacturers, independent software
vendors, and content creators. Monotype Imaging Holdings Inc. is
headquartered in Woburn, Massachusetts.
Monotype Imaging Meets or Beats Estimates Seven Straight
Monotype Imaging has met or topped the Zacks Consensus Estimate in
each of the last seven quarters. The average beat has been $0.02
more than the Zacks Consensus Estimate which works out to be a 14%
positive earnings surprise. That is among the larger average
surprises that has been profiled here in some time. As a result of
the strong positive earnings surprises, the stock has moved higher
by an average of 7.6% following the earnings release.
The largest price movement in the stock came the day after the
company crushed estimates. The December 2010 quarter saw the
company beat the topline estimate of $28 million by posting
revenues of $29 million. EPS of $0.17 was $0.04 higher than the
$0.13 Zacks Consensus Estimate and the stock moved higher by more
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Monotype Imaging Most Recent Reported Earnings
On May 1, 2012 Monotype Imaging reported revenue of $34 million,
approximately $1 million higher than the Zacks Consensus Estimate
and up from $30 million reported in year ago quarter, an increase
of 13%. Earnings per share came in at $0.20, $0.01 higher than the
Zacks Consensus Estimate of $0.19. The beat of 5.3% helped lift the
stock higher by about 1% in the session following the release. This
marked the third straight quarter the company reported $0.20 per
share in earnings.
Monotype Imaging Sees Estimates Moving Higher
Monotype Imaging has seen earnings estimates move higher following
the recent positive earnings surprise. The Zacks Consensus Estimate
for 2012 was as low as $0.85 in February 2011 and has since bumped
higher to $0.86.
Estimates for 2013 have also seen an increase following the most
recent quarterly release. The Zacks Consensus Estimate for 2013
stood at $0.96 in December 2011 and has since moved to $1.05.
The valuation for Monotype Imaging is mostly in line with the
industry average. A 17x trailing twelve months PE multiple is just
higher than the 16.5x industry average. The same is true of the
forward earnings multiple of 15.5X for TYPE and the 14x industry
average. Price to book shows the stock trading at a slight discount
to the industry average while price to sales show the stock trading
at a slight premium.
A quick look at the price and consensus chart shows a stock that
has moved higher as estimates moved higher. The gap between the
2013 line and the 2012 line was probably a bit too much and could
have been a single analyst estimate, so the decrease there
shouldn't be too much of a cause of concern. More to that point,
the 2013 line has been heading in the direction that an aggressive
growth investor is looking for. Monotype Imaging has moved to a
Zacks #1 Rank (Strong Buy) as of May 2, 2012.
Brian Bolan is the Aggressive Growth Stock Strategist for
Zacks.com. He is also the Editor in charge of the
Run Investor service
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MONOTYPE IMAGNG (TYPE): Free Stock Analysis
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