The 10-second takeaway
For the quarter ended March 31 (Q1), Cymer beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Cymer logged revenue of $150.5 million. The seven analysts polled by S&P Capital IQ anticipated a top line of $138.5 million on the same basis. GAAP reported sales were 2.5% lower than the prior-year quarter's $154.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.68. The eight earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. GAAP EPS of $0.68 for Q1 were 28% lower than the prior-year quarter's $0.94 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 50.2%, 130 basis points worse than the prior-year quarter. Operating margin was 11.1%, 1,200 basis points worse than the prior-year quarter. Net margin was 14.3%, 440 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $146.2 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $630.3 million. The average EPS estimate is $1.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 104 members out of 120 rating the stock outperform, and 16 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Cymer a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cymer is outperform, with an average price target of $52.33.
Over the decades, small-cap stocks, like Cymer have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Cymer to My Watchlist.