The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Brooks Automation beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins contracted, and net margins dropped.
Brooks Automation chalked up revenue of $120.2 million. The six analysts polled by S&P Capital IQ predicted a top line of $117.1 million on the same basis. GAAP reported sales were 33% lower than the prior-year quarter's $178.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.06. The five earnings estimates compiled by S&P Capital IQ averaged $0.03 per share on the same basis. GAAP EPS of $0.05 for Q1 were 86% lower than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.6%, 150 basis points better than the prior-year quarter. Operating margin was 1.4%, 1,200 basis points worse than the prior-year quarter. Net margin was 2.5%, 1,070 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $136.0 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $566.3 million. The average EPS estimate is $0.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 166 members out of 183 rating the stock outperform, and 17 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Brooks Automation a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brooks Automation is hold, with an average price target of $11.
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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.