The 10-second takeaway
For the quarter ended March 31 (Q1), Affymetrix met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share.
Margins dropped across the board.
Affymetrix recorded revenue of $65.2 million. The 13 analysts polled by S&P Capital IQ foresaw revenue of $64.8 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $73.7 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 -$0.04. The 13 earnings estimates compiled by S&P Capital IQ averaged -$0.10 per share. GAAP EPS were -$0.06 for Q1 compared to $0.00 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.1%, 510 basis points worse than the prior-year quarter. Operating margin was -5.1%, 940 basis points worse than the prior-year quarter. Net margin was -6.5%, 660 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $66.1 million. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $268.1 million. The average EPS estimate is -$0.28.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 346 members out of 411 rating the stock outperform, and 65 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Affymetrix a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Affymetrix is hold, with an average price target of $5.38.
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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.