The 10-second takeaway
For the quarter ended Dec. 31 (Q3), AVX missed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly, and earnings per share contracted significantly.
Margins contracted across the board.
AVX reported revenue of $340.9 million. The two analysts polled by S&P Capital IQ foresaw a top line of $368.3 million. Sales were 16% lower than the prior-year quarter's $405.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.22. The four earnings estimates compiled by S&P Capital IQ forecast $0.27 per share. GAAP EPS of $0.22 for Q3 were 39% lower than the prior-year quarter's $0.36 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 23.0%, 520 basis points worse than the prior-year quarter. Operating margin was 14.7%, 570 basis points worse than the prior-year quarter. Net margin was 10.8%, 410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $346.0 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $1.53 billion. The average EPS estimate is $1.18.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 126 members out of 134 rating the stock outperform, and eight members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give AVX a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AVX is hold, with an average price target of $15.00.
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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.