Kulicke & Soffa Industries
The 10-second takeaway
For the quarter ended March 31 (Q2), Kulicke & Soffa Industries beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Kulicke & Soffa Industries chalked up revenue of $146.3 million. The two analysts polled by S&P Capital IQ anticipated sales of $132.5 million on the same basis. GAAP-reported sales were 29% lower than the prior-year quarter's $206.7 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 $0.22. The two earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS of $0.22 for Q2 were 59% lower than the prior-year quarter's $0.54 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 45.6%, 230 basis points worse than the prior-year quarter. Operating margin was 14.4%, 700 basis points worse than the prior-year quarter. Net margin was 11.4%, 790 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $214.6 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $677.8 million. The average EPS estimate is $1.35.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 306 members rating the stock outperform and 14 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 54 give Kulicke & Soffa Industries a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kulicke & Soffa Industries is outperform, with an average price target of $13.83.
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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 Kulicke & Soffa Industries. 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.