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Brooks Automation Beats on Both Top and Bottom Lines

Brooks Automation (Nasdaq: BRKS  ) reported earnings on Nov. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Brooks Automation beat expectations on revenues and beat expectations on earnings per share.

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

Gross margins shrank, operating margins dropped, net margins increased.

Revenue details
Brooks Automation logged revenue of $119.4 million. The six analysts polled by S&P Capital IQ foresaw a top line of $116.0 million on the same basis. GAAP reported sales were 8.8% lower than the prior-year quarter's $131.0 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 $0.08. The seven earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS of $1.77 for Q4 were much higher than the prior-year quarter's $0.18 per share.

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 32.3%, 410 basis points worse than the prior-year quarter. Operating margin was 2.0%, 470 basis points worse than the prior-year quarter. Net margin was 97.3%, 8,810 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $114.5 million. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $529.8 million. The average EPS estimate is $0.38.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 176 members out of 195 rating the stock outperform, and 19 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Brooks Automation a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brooks Automation is hold, with an average price target of $10.21.

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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.

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  • Report this Comment On November 13, 2012, at 2:27 AM, chris293 wrote:

    The finance information was alright, but what I believe was missing was the future of the company and the status of the companyt compared to its competition for new sales in the semiconductor equipment market.

    The conference call was more positive than the numbers in this article I thought. How can be we get an idea of any new equipment or R&D developments when these are suppose to be kept secert.

    Being a fool too, I answer my own questions sometimes. Here is where I have hope since as all industries, there are cycles or even seasons when businesses peak or have bottoms.

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