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Brooks Automation Earnings Preview

Brooks Automation  (Nasdaq: BRKS  ) met its estimates last quarter, but investors hope that it will beat them this quarter. The company will unveil its latest earnings on Thursday, Nov. 10. Brooks Automation is a provider of automation, vacuum, and instrumentation solutions and is a valued business partner to original equipment manufacturers and equipment users throughout the world.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Brooks Automation with three of five analysts rating it hold. Analysts like Brooks Automation better than competitor Cohu overall. Zero out of one analysts rate Cohu a buy compared to two of five for Brooks Automation. Analysts still rate the stock a hold, but they are a bit more wary about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $136.9 million in revenue this quarter. That would represent a decline of 24.6% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.27 per share. Estimates range from $0.26 to $0.28.

What our community says:
CAPS All-Stars are solidly behind the stock with 93.1% granting it an "outperform" rating. The community at large agrees with the All-Stars with 90.2% assigning it a rating of "outperform." Fools have embraced Brooks Automation, though the message boards have been quiet lately with only 47 posts in the past 30 days. Even with a robust four out of five stars, Brooks Automation's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Brooks Automation's income has fallen year over year by an average of more than threefold over the past five quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter Q3 Q2 Q1 Q4
Gross Margin 30.6% 32.0% 32.1% 30.4%
Operating Margin 11.9% 13.9% 13.3% 12.3%
Net Margin 35.6% 13.8% 13.2% 13.3%
For all our Brooks Automation-specific analysis, including earnings and beyond, add Brooks Automation to My Watchlist.

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DocumentId: 1584918, ~/Articles/ArticleHandler.aspx, 5/26/2012 8:09:53 PM

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Related Tickers

5/25/2012 4:00 PM
BRKS $9.69 Up +0.01 +0.10%
Brooks Automation,… CAPS Rating: ****

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