The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ATMI beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Gross margins improved, operating margins dropped, net margins contracted.
ATMI reported revenue of $90.3 million. The four analysts polled by S&P Capital IQ expected a top line of $87.6 million. Sales were 5.9% lower than the prior-year quarter's $96.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.19. The five earnings estimates compiled by S&P Capital IQ averaged $0.14 per share on the same basis. GAAP EPS were -$1.49 for Q4 versus $0.43 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 47.1%, 10 basis points better than the prior-year quarter. Operating margin was 8.8%, 20 basis points worse than the prior-year quarter. Net margin was -52.3%, 6,660 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $94.4 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $429.1 million. The average EPS estimate is $1.36.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 78 members out of 85 rating the stock outperform, and seven members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give ATMI 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 ATMI is hold, with an average price target of $20.42.
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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.