American Science & Engineering Whiffs on Revenues

American Science & Engineering (Nasdaq: ASEI ) reported earnings on May 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q4), American Science & Engineering whiffed on revenues and missed estimates on earnings per share.

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

Margins dropped across the board.

Revenue details
American Science & Engineering recorded revenue of $39.8 million. The five analysts polled by S&P Capital IQ expected revenue of $59.3 million on the same basis. GAAP reported sales were 41% lower than the prior-year quarter's $67.7 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 $0.15. The five earnings estimates compiled by S&P Capital IQ averaged $0.83 per share. GAAP EPS of $0.15 for Q4 were 85% lower than the prior-year quarter's $1.03 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 44.4%, 120 basis points worse than the prior-year quarter. Operating margin was 4.9%, 1,650 basis points worse than the prior-year quarter. Net margin was 3.4%, 1,070 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $54.2 million. On the bottom line, the average EPS estimate is $0.64.

Next year's average estimate for revenue is $232.9 million. The average EPS estimate is $3.23.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 998 members out of 1,026 rating the stock outperform, and 28 members rating it underperform. Among 328 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 324 give American Science & Engineering a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Science & Engineering is hold, with an average price target of $71.50.

Over the decades, small-cap stocks, like American Science & Engineering 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 American Science & Engineering to My Watchlist.

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. Motley Fool newsletter services have recommended buying shares of American Science & Engineering. 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.

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 icon found on every comment.