The 10-second takeaway
For the quarter ended March 31 (Q1), STR Holdings beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
STR Holdings reported revenue of $31.1 million. The eight analysts polled by S&P Capital IQ anticipated net sales of $30.2 million on the same basis. GAAP reported sales were 67% lower than the prior-year quarter's $92.9 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 -$0.01. The four earnings estimates compiled by S&P Capital IQ averaged -$0.02 per share. GAAP EPS were -$2.00 for Q1 compared to $0.26 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 6.4%, 2,960 basis points worse than the prior-year quarter. Operating margin was -23.7%, 4,370 basis points worse than the prior-year quarter. Net margin was -264.2%, 27,590 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $34.4 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $167.7 million. The average EPS estimate is $0.24.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 45 members out of 52 rating the stock outperform, and seven members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give STR Holdings a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on STR Holdings is hold, with an average price target of $7.64.
Over the decades, small-cap stocks, like STR Holdings have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add STR Holdings to My Watchlist.