Please ensure Javascript is enabled for purposes of website accessibility

Shares of Brooks Automation Decline Despite Topping Estimates

By Daniel Miller - Updated Feb 2, 2018 at 12:28PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors might be overreacting to Brooks Automation's first quarter. Here are the figures you need to know.

What happened

Shares of Brooks Automation (BRKS 1.74%), a worldwide provider of automation and cryogenic solutions for multiple markets including semiconductor manufacturing and life sciences, are down 10% as of 11:00 a.m. EST after the company released first-quarter results.

So what

Despite the stock price drop, the first quarter wasn't anything to shame. Revenue during the first quarter jumped 18.4% to $189.33 million, up from the prior year's $159.96 million. Its bottom line also moved higher from the year-ago $17.30 million, or $0.25 per share, to $22.50 million, or $0.32 per share -- that result was also higher than the $0.31 per share that analysts called for.

Semiconductor automation

Image source: Getty Images.

As CEO Steve Schwartz said in a press release:

Our Semiconductor Solutions Group delivered at the high end of our expectations in both revenue and gross margin, producing 19% margin at the segment operating income line. And the Life Sciences segment provided another quarter of exceptional year-over-year revenue growth of 42%, including 22% organic growth plus the benefits of our recent strategic acquisitions. Even amid the strong semiconductor business results, Life Sciences has now grown to be 25% of total revenue. 

Now what

Looking ahead, Brooks Automation estimates second-quarter revenue to check in between $195 million to $205 million and earnings per share between $0.33 and $0.41, which are solid figures. The reaction from investors seems a bit harsh, and even over the course of writing this article, the original 10% loss in share price has softened to a 6% decline.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Brooks Automation, Inc. Stock Quote
Brooks Automation, Inc.
$70.37 (1.74%) $1.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.