The 10-second takeaway
For the quarter ended March 31 (Q2), Brooks Automation beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins contracted, net margins dropped.
Brooks Automation tallied revenue of $139.3 million. The seven analysts polled by S&P Capital IQ looked for revenue of $136.2 million on the same basis. GAAP reported sales were 28% lower than the prior-year quarter's $192.7 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 $0.20. The seven earnings estimates compiled by S&P Capital IQ averaged $0.18 per share. GAAP EPS of $0.14 for Q2 were 66% lower than the prior-year quarter's $0.41 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 34.7%, 270 basis points better than the prior-year quarter. Operating margin was 8.2%, 600 basis points worse than the prior-year quarter. Net margin was 6.8%, 700 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $145.9 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $556.6 million. The average EPS estimate is $0.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 164 members out of 181 rating the stock outperform, and 17 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Brooks Automation 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 Brooks Automation is outperform, with an average price target of $12.83.
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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. 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.