Aixtron Goes Negative (AIXG)

Aixtron Goes Negative

Aixtron (Nasdaq: AIXG ) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Aixtron missed estimates on revenue and missed expectations on earnings per share.

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

Margins contracted across the board.

Revenue details
Aixtron notched revenue of $58.5 million. The 19 analysts polled by S&P Capital IQ predicted a top line of $63.0 million on the same basis. GAAP reported sales were 77% lower than the prior-year quarter's $255.0 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 seven earnings estimates compiled by S&P Capital IQ averaged -$0.08 per share. GAAP EPS were -$0.15 for Q2 versus $0.55 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 31.9%, 1,190 basis points worse than the prior-year quarter. Operating margin was -29.2%, 6,010 basis points worse than the prior-year quarter. Net margin was -25.1%, 4,680 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $73.2 million. On the bottom line, the average EPS estimate is -$0.06.

Next year's average estimate for revenue is $298.9 million. The average EPS estimate is -$0.20.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 211 members out of 243 rating the stock outperform, and 32 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Aixtron a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aixtron is hold, with an average price target of $15.69.

Is Aixtron the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.

Add Aixtron 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. The Motley Fool has no positions in the stocks mentioned above. 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.