The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Cabot Microelectronics missed on both revenues and earnings per share.
Compared to the prior-year quarter, revenue dropped and earnings per share shrank significantly.
Margins dropped across the board.
Cabot Microelectronics logged revenue of $102.1 million. The three analysts polled by S&P Capital IQ expected to see revenue of $106.1 million. Sales were 11% lower than the prior-year quarter's $114.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.45. The two earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share. GAAP EPS of $0.45 for Q1 were 37% lower than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 48.3%, 200 basis points worse than the prior-year quarter. Operating margin was 15.0%, 640 basis points worse than the prior-year quarter. Net margin was 10.2%, 420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $103.8 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $455.5 million. The average EPS estimate is $2.28.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 37 members out of 42 rating the stock outperform, and five members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Cabot Microelectronics a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cabot Microelectronics is outperform, with an average price target of $49.50.
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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. 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.