The 10-second takeaway
For the quarter ended March 31 (Q3), Aeroflex Holding missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Aeroflex Holding reported revenue of $162.3 million. The five analysts polled by S&P Capital IQ predicted a top line of $173.0 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $193.2 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 $0.08. The six earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. GAAP EPS were -$0.77 for Q3 versus $0.05 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 48.8%, 620 basis points worse than the prior-year quarter. Operating margin was 1.6%, 1,260 basis points worse than the prior-year quarter. Net margin was -40.2%, 4,230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $199.0 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $691.6 million. The average EPS estimate is $0.61.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 21 members out of 29 rating the stock outperform, and eight members rating it underperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give Aeroflex Holding a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aeroflex Holding is hold, with an average price target of $13.10.
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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.