MEMC Electronic Materials
The 10-second takeaway
For the quarter ended June 30 (Q2), MEMC Electronic Materials crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted to a loss. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins dropped across the board.
MEMC Electronic Materials reported revenue of $933.4 million. The 15 analysts polled by S&P Capital IQ predicted revenue of $748.2 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $745.6 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 $0.14. The 18 earnings estimates compiled by S&P Capital IQ forecast -$0.02 per share. GAAP EPS were -$0.27 for Q2 versus $0.21 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.2%, 990 basis points worse than the prior-year quarter. Operating margin was 0.3%, 540 basis points worse than the prior-year quarter. Net margin was -7.6%, 1,390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $642.1 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $2.58 billion. The average EPS estimate is -$0.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,820 members out of 1,894 rating the stock outperform, and 74 members rating it underperform. Among 349 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 330 give MEMC Electronic Materials a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MEMC Electronic Materials is hold, with an average price target of $4.71.
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