Fool Checkup: Affymetrix Earnings

Affymetrix (Nasdaq: AFFX  ) reported earnings on Nov. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Affymetrix met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share expanded.

Margins dropped across the board.

Revenue details
Affymetrix reported revenue of $79.6 million. The nine analysts polled by S&P Capital IQ anticipated revenue of $80.2 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $64.0 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 -$0.03. The 14 earnings estimates compiled by S&P Capital IQ averaged -$0.04 per share. GAAP EPS were -$0.25 for Q3 against -$0.14 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 52.4%, 440 basis points worse than the prior-year quarter. Operating margin was -14.0%, 480 basis points worse than the prior-year quarter. Net margin was -22.4%, 710 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $84.9 million. On the bottom line, the average EPS estimate is -$0.03.

Next year's average estimate for revenue is $296.5 million. The average EPS estimate is -$0.13.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 349 members out of 413 rating the stock outperform, and 64 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Affymetrix a green thumbs-up, and 15 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Affymetrix is hold, with an average price target of $5.49.

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. Motley Fool newsletter services recommend Affymetrix. 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.


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