The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Power-One beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins grew, net margins contracted.
Power-One notched revenue of $283.6 million. The 13 analysts polled by S&P Capital IQ wanted to see revenue of $269.8 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $245.0 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 $0.17. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. GAAP EPS of $0.13 for Q3 were 52% lower than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.9%, 80 basis points better than the prior-year quarter. Operating margin was 15.3%, 140 basis points better than the prior-year quarter. Net margin was 7.4%, 950 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $251.2 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $1.07 billion. The average EPS estimate is $0.61.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 601 members out of 641 rating the stock outperform, and 40 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Power-One a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Power-One is hold, with an average price target of $6.23.
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