The 10-second takeaway
For the quarter ended Dec. 25 (Q2), International Rectifier met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted to a loss.
Margins contracted across the board.
International Rectifier logged revenue of $230.1 million. The seven analysts polled by S&P Capital IQ expected to see sales of $229.5 million. Sales were 18% lower than the prior-year quarter's $281.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at -$0.09. The 10 earnings estimates compiled by S&P Capital IQ forecast -$0.04 per share. GAAP EPS were -$0.09 for Q2 versus $0.62 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 35.4%, 760 basis points worse than the prior-year quarter. Operating margin was -1.4%, 1,730 basis points worse than the prior-year quarter. Net margin was -2.8%, 1,840 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $237.0 million. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $1.03 billion. The average EPS estimate is $0.23.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 153 members out of 169 rating the stock outperform, and 16 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give International Rectifier 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 International Rectifier is outperform, with an average price target of $25.14.
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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.