The 10-second takeaway
For the quarter ended Feb. 25 (Q2), FSI International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
FSI International reported revenue of $38.5 million. The three analysts polled by S&P Capital IQ predicted sales of $32.1 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $30.8 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 $0.09. The three earnings estimates compiled by S&P Capital IQ forecast $0.05 per share. GAAP EPS of $0.09 for Q2 were 31% lower than the prior-year quarter's $0.13 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 32.5%, 990 basis points worse than the prior-year quarter. Operating margin was 9.8%, 620 basis points worse than the prior-year quarter. Net margin was 9.6%, 640 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $50.4 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $150.2 million. The average EPS estimate is $0.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 107 members out of 116 rating the stock outperform, and nine members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give FSI International a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FSI International is outperform, with an average price target of $6.08.
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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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.