The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Newport met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins grew, net margins dropped.
Newport chalked up revenue of $141.6 million. The six analysts polled by S&P Capital IQ predicted sales of $143.4 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $160.9 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 $0.37. The five earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. Non-GAAP EPS of $0.37 for Q4 were 48% higher than the prior-year quarter's $0.25 per share. GAAP EPS were -$2.94 for Q4 versus $0.89 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 44.4%, 310 basis points better than the prior-year quarter. Operating margin was 10.3%, 340 basis points better than the prior-year quarter. Net margin was -79.6%, 10,110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $141.2 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $599.8 million. The average EPS estimate is $1.37.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 105 members out of 120 rating the stock outperform, and 15 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Newport a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Newport is outperform, with an average price target of $16.72.
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