The 10-second takeaway
For the quarter ended March 31 (Q1), Ceradyne whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Ceradyne tallied revenue of $106.3 million. The six analysts polled by S&P Capital IQ hoped for revenue of $120.2 million on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $150.1 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 $0.17. The five earnings estimates compiled by S&P Capital IQ forecast $0.35 per share on the same basis. GAAP EPS of $0.16 for Q1 were 83% lower than the prior-year quarter's $0.94 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 27.4%, 1,130 basis points worse than the prior-year quarter. Operating margin was 7.5%, 1,660 basis points worse than the prior-year quarter. Net margin was 3.6%, 1,210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $142.6 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $595.8 million. The average EPS estimate is $2.38.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,249 members out of 1,286 rating the stock outperform, and 37 members rating it underperform. Among 377 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 369 give Ceradyne a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ceradyne is outperform, with an average price target of $36.60.
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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. The Motley Fool owns shares of Ceradyne. 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.