The 10-second takeaway
For the quarter ended March 31 (Q1), Newport missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Newport reported revenue of $157.2 million. The seven analysts polled by S&P Capital IQ anticipated sales of $161 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $128.4 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 $0.16. The seven earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.17 for Q1 were 68% lower than the prior-year quarter's $0.53 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 43.3%, 180 basis points worse than the prior-year quarter. Operating margin was 6.5%, 670 basis points worse than the prior-year quarter. Net margin was 4.2%, 1,200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $165.6 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $671.6 million. The average EPS estimate is $1.18.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 96 members rating the stock outperform and 22 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Newport a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Newport is outperform, with an average price target of $22.63.
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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.