The 10-second takeaway
For the quarter ended July 1 (Q2), Power-One crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins contracted, net margins grew.
Power-One logged revenue of $321.5 million. The 13 analysts polled by S&P Capital IQ anticipated a top line of $251.5 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $260.3 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 $0.24. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS of $0.30 for Q2 were 43% higher than the prior-year quarter's $0.21 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 30.3%, 330 basis points worse than the prior-year quarter. Operating margin was 18.6%, 210 basis points worse than the prior-year quarter. Net margin was 14.5%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $237.3 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $960.0 million. The average EPS estimate is $0.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 612 members out of 652 rating the stock outperform, and 40 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give Power-One a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Power-One is outperform, with an average price target of $5.63.
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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. The Motley Fool owns shares of Power-One. 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.