Affymetrix Goes Negative (AFFX)

Affymetrix Goes Negative

Affymetrix (Nasdaq: AFFX ) reported earnings Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Affymetrix met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted to a loss.

Margins shrank across the board.

Revenue details
Affymetrix booked revenue of $65.1 million. The 15 analysts polled by S&P Capital IQ foresaw sales of $65.7 million. GAAP sales were 23% lower than the prior-year quarter's $84.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.21. The 14 earnings estimates compiled by S&P Capital IQ forecast -$0.07 per share. GAAP EPS were -$0.21 for Q4 against $0.06 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 53.3%, 480 basis points worse than the prior-year quarter. Operating margin was -16.6%, 2,270 basis points worse than the prior-year quarter. Net margin was -22.6%, 2,730 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $82.4 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $335.7 million. The average EPS estimate is -$0.03.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 342 members out of 407 rating the stock outperform, and 65 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Affymetrix a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Affymetrix is hold, with an average price target of $5.82.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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