The 10-second takeaway
For the quarter ended Jan. 1 (Q4), Power-One beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Power-One notched revenue of $266.8 million. The 14 analysts polled by S&P Capital IQ wanted to see a top line of $239.4 million. Sales were 27% lower than the prior-year quarter's $366.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.24. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.13 per share on the same basis. GAAP EPS of $0.21 for Q4 were 40% lower than the prior-year quarter's $0.35 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 27.1%, 1,360 basis points worse than the prior-year quarter. Operating margin was 13.1%, 1,850 basis points worse than the prior-year quarter. Net margin was 12.1%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $225.8 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $0.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 613 members out of 648 rating the stock outperform, and 35 members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 138 give Power-One a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Power-One is outperform, with an average price target of $6.45.
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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. The Motley Fool owns shares of Power-One. 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.