MTS Systems Corporation (NASDAQ: MTSC) stock rose over 2.8% on November 27th, 2018 pre-market session. Test orders for the fourth quarter were $140.7 million, which is the second consecutive quarter of orders exceeding $140 million even with an 8.2% decrease compared to the same prior year period. The overall decrease from the same prior year period reflects record orders activity in the prior year coupled with a shift in the timing of order commitments by customers in the Test ground vehicles sector. The decrease was partially offset by expanded orders in the Test structures sector impacted by the timing of infrastructure investments and government funding. Sensors orders for the fourth quarter were a record $96.3 million, representing a 22.2% sequential increase over the third quarter of fiscal year 2018. This growth shows continued strength in the Sensors industrial and test sectors. It was driven incrementally by the initial purchase order associated with the U.S. Department of Defense, entered into in September 2018, which was funded up to $20 million in the quarter, as well as broad demand across all Sensors sectors.
Moreover, MTSC has continued to strengthen the balance sheet by reducing the debt outstanding for the eighth consecutive quarter. This included debt payments of $3.6 million during the fourth quarter of the fiscal year 2018. The company made a total of $73.7 million of debt payments during the fiscal year 2018, which is $59.3 million of which was in excess of the mandatory repayment requirements.
MTSC in the fourth quarter of FY 18 has reported the adjusted earnings per share of 61 cents. The results for the fourth quarter of FY18 included the gain on sale of one of the China manufacturing facilities and an increase in Test gross profit. The company had reported 1.8 percent fall in the adjusted revenue to $197.88 million in the fourth quarter of FY 18, missing the analysts’ estimates for revenue of $202.72 million. The revenue is driven rimarily by lower equipment volume in the ground vehicles and structures sectors of the Test business, partially offset by an increase in service volume and growth in the Sensors business. The Sensors business had continued momentum and sustained broad demand across all Sensors sectors.
MTSC has declared a quarterly dividend of $0.30 per share. The dividend was payable on October 1, 2018 to shareholders of record as of the close of business on September 17, 2018.