The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Newport met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins contracted, net margins increased.
Newport logged revenue of $160.9 million. The seven analysts polled by S&P Capital IQ expected revenue of $161.5 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $132.9 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 $0.25. The eight earnings estimates compiled by S&P Capital IQ predicted $0.34 per share on the same basis. GAAP EPS of $0.90 for Q4 were 125% higher than the prior-year quarter's $0.40 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 41.3%, 300 basis points worse than the prior-year quarter. Operating margin was 3.7%, 1,010 basis points worse than the prior-year quarter. Net margin was 21.5%, 1,010 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $156.7 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $655.1 million. The average EPS estimate is $1.28.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 98 members out of 118 rating the stock outperform, and 20 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Newport a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Newport is outperform, with an average price target of $18.59.
Over the decades, small-cap stocks, like Newport 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 Newport to My Watchlist.