The 10-second takeaway
For the quarter ended March 31 (Q1), Orbotech 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 significantly.
Gross margins grew, operating margins dropped, net margins contracted.
Orbotech tallied revenue of $100.2 million. The six analysts polled by S&P Capital IQ predicted a top line of $95.6 million on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $134.2 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 $0.07. The six earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. GAAP EPS of $0.04 for Q1 were 87% lower than the prior-year quarter's $0.30 per share. (The prior-year quarter included $0.00 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.7%, 320 basis points better than the prior-year quarter. Operating margin was 5.0%, 620 basis points worse than the prior-year quarter. Net margin was 1.6%, 670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $101.6 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $497.4 million. The average EPS estimate is $1.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 97 members out of 102 rating the stock outperform, and five members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Orbotech a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Orbotech is outperform, with an average price target of $13.90.
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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.