The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Intevac beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Intevac chalked up revenue of $18.6 million. The three analysts polled by S&P Capital IQ looked for a top line of $18.3 million. Sales were 48% lower than the prior-year quarter's $36.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at -$0.27. The three earnings estimates compiled by S&P Capital IQ anticipated -$0.27 per share. GAAP EPS were -$0.27 for Q4 compared to $0.04 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 34.3%, 600 basis points worse than the prior-year quarter. Operating margin was -45.5%, 4,630 basis points worse than the prior-year quarter. Net margin was -33.3%, 3,640 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $17.7 million. On the bottom line, the average EPS estimate is -$0.26.
Next year's average estimate for revenue is $123.4 million. The average EPS estimate is -$0.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 204 members rating the stock outperform, and 16 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Intevac a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intevac is outperform, with an average price target of $13.
Over the decades, small-cap stocks, like Intevac have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Intevac to My Watchlist.
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.