The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Materion missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Materion booked revenue of $334.4 million. The four analysts polled by S&P Capital IQ foresaw a top line of $344.7 million on the same basis. GAAP reported sales were 6.1% lower than the prior-year quarter's $356.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.04. The three earnings estimates compiled by S&P Capital IQ forecast $0.06 per share. GAAP EPS of $0.04 for Q4 were 93% lower than the prior-year quarter's $0.60 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 11.8%, 360 basis points worse than the prior-year quarter. Operating margin was 0.8%, 390 basis points worse than the prior-year quarter. Net margin was 0.2%, 330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $351.5 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $1.60 billion. The average EPS estimate is $2.18.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 252 members out of 272 rating the stock outperform, and 20 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give Materion 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 Materion is buy, with an average price target of $34.50.
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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