Kulicke & Soffa Industries Beats on Both Top and Bottom Lines

Kulicke & Soffa Industries (Nasdaq: KLIC  ) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q2), Kulicke & Soffa Industries beat expectations on both revenue and earnings per share.

Compared to the prior-year quarter, both revenue and GAAP earnings per share shrank significantly.

Margins contracted across the board.

Revenue details
Kulicke & Soffa Industries chalked up revenue of $146.3 million. The two analysts polled by S&P Capital IQ anticipated sales of $132.5 million on the same basis. GAAP-reported sales were 29% lower than the prior-year quarter's $206.7 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 $0.22. The two earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS of $0.22 for Q2 were 59% lower than the prior-year quarter's $0.54 per share.

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 45.6%, 230 basis points worse than the prior-year quarter. Operating margin was 14.4%, 700 basis points worse than the prior-year quarter. Net margin was 11.4%, 790 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $214.6 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $677.8 million. The average EPS estimate is $1.35.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 306 members rating the stock outperform and 14 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 54 give Kulicke & Soffa Industries a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kulicke & Soffa Industries is outperform, with an average price target of $13.83.

Over the decades, small-cap stocks like Kulicke & Soffa Industries 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: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

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. The Motley Fool owns shares of Kulicke & Soffa Industries. 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.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1877064, ~/Articles/ArticleHandler.aspx, 10/23/2014 12:04:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement