The 10-second takeaway
For the quarter ended March 31 (Q1), Ultratech beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share improved significantly.
Margins increased across the board.
Ultratech reported revenue of $49.6 million. The two analysts polled by S&P Capital IQ anticipated sales of $47.7 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $47.4 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 $0.38. The two earnings estimates compiled by S&P Capital IQ anticipated $0.28 per share. GAAP EPS of $0.38 for Q1 were 27% higher than the prior-year quarter's $0.30 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 57.3%, 730 basis points better than the prior-year quarter. Operating margin was 22.7%, 550 basis points better than the prior-year quarter. Net margin was 20.6%, 400 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $46.3 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $205.7 million. The average EPS estimate is $1.25.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 113 members rating the stock outperform and 113 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Ultratech a green thumbs-up, and 50 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ultratech is buy, with an average price target of $32.50.
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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.