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What: Shares of technology equipment maker Brooks Automation (Nasdaq: BRKS ) saw its shares dive 14% today after the company released earnings.
So what: Revenue fell 25% in the fiscal third quarter to $140.4 million and net income dropped from $66.9 million a year ago to $8.0 million, or $0.12 per share. Revenue was short of estimates and on an adjusted basis earnings per share of $0.14 were $0.05 below expectations.
Now what: The business is dealing with a challenging environment, but it still didn't live up to its own low expectations. With sales falling as much as they did, and the company's profitability well short of expectations, I'd wait for some positive momentum before jumping in. The company does have over $200 million in cash and no debt, so the balance sheet is strong, yet I would just like to see better earnings before buying in.
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