Kulicke & Soffa Industries
The 10-second takeaway
For the quarter ended June 30 (Q3), Kulicke & Soffa Industries beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted.
Margins grew across the board.
Kulicke & Soffa Industries reported revenue of $255.5 million. The two analysts polled by S&P Capital IQ predicted a top line of $239.6 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $294.4 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 $0.91. The two earnings estimates compiled by S&P Capital IQ predicted $0.70 per share. GAAP EPS of $0.90 for Q3 were 5.3% lower than the prior-year quarter's $0.95 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 47.9%, 240 basis points better than the prior-year quarter. Operating margin was 30.1%, 230 basis points better than the prior-year quarter. Net margin was 26.7%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $240.0 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $754.1 million. The average EPS estimate is $1.97.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 304 members out of 317 rating the stock outperform, and 13 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Kulicke & Soffa Industries a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kulicke & Soffa Industries is outperform, with an average price target of $14.33.
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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 the 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 Kulicke and Soffa Industries. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.