The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AU Optronics missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP loss per share expanded.
Margins shrank across the board.
AU Optronics notched revenue of $2.96 billion. The 17 analysts polled by S&P Capital IQ predicted net sales of $3.12 billion on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $3.52 billion.
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 -$0.77. The one earnings estimate compiled by S&P Capital IQ anticipated -$0.50 per share on the same basis. GAAP EPS were -$0.08 for Q4 compared to -$0.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was -11.5%, 710 basis points worse than the prior-year quarter. Operating margin was -19.5%, 850 basis points worse than the prior-year quarter. Net margin was -23.1%, 1,190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.97 billion. On the bottom line, the average EPS estimate is -$0.44.
Next year's average estimate for revenue is $13.65 billion. The average EPS estimate is -$1.08.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 469 members out of 493 rating the stock outperform, and 24 members rating it underperform. Among 124 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give AU Optronics a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AU Optronics is hold, with an average price target of $4.99.
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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.