The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Rofin-Sinar Technologies missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Rofin-Sinar Technologies booked revenue of $131.6 million. The four analysts polled by S&P Capital IQ expected revenue of $140.3 million. Sales were 4.1% lower than the prior-year quarter's $137.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.28. The four earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. GAAP EPS of $0.28 for Q1 were 45% lower than the prior-year quarter's $0.51 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 35.7%, 540 basis points worse than the prior-year quarter. Operating margin was 8.4%, 730 basis points worse than the prior-year quarter. Net margin was 6.1%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $142 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $585.9 million. The average EPS estimate is $1.70.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,232 members rating the stock outperform, and 24 members rating it underperform. Among 463 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 461 give Rofin-Sinar Technologies 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 Rofin-Sinar Technologies is outperform, with an average price target of $29.70.
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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 Rofin-Sinar Technologies. Motley Fool newsletter services have recommended buying shares of Rofin-Sinar Technologies. 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.