The 10-second takeaway
For the quarter ended June 30 (Q2), Newport missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Newport tallied revenue of $153.7 million. The six analysts polled by S&P Capital IQ anticipated net sales of $157.7 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $130.1 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 $0.30. The five earnings estimates compiled by S&P Capital IQ averaged $0.30 per share. GAAP EPS of $0.24 for Q2 were 33% lower than the prior-year quarter's $0.36 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 43.5%, 240 basis points worse than the prior-year quarter. Operating margin was 7.4%, 550 basis points worse than the prior-year quarter. Net margin was 6.0%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $164.4 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $655.6 million. The average EPS estimate is $1.40.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 98 members out of 114 rating the stock outperform, and 16 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Newport a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Newport is buy, with an average price target of $22.29.
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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 has no positions in the stocks mentioned above. 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.