The 10-second takeaway
For the quarter ended June 30 (Q2), Solazyme beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share dropped.
Gross margins shrank, operating margins expanded, and net margins increased.
Solazyme notched revenue of $13.5 million. The 11 analysts polled by S&P Capital IQ hoped for net sales of $13.1 million on the same basis. GAAP reported sales were 83% higher than the prior-year quarter's $7.4 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 -$0.33. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.29 per share. GAAP EPS were -$0.32 for Q2 versus -$0.61 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 90.2%, 470 basis points worse than the prior-year quarter. Operating margin was -146.8%, 3,710 basis points better than the prior-year quarter. Net margin was -142.0%, 8,700 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $12.5 million. On the bottom line, the average EPS estimate is -$0.30.
Next year's average estimate for revenue is $52.8 million. The average EPS estimate is -$1.11.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 299 members out of 316 rating the stock outperform, and 17 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Solazyme a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Solazyme is outperform, with an average price target of $18.50.
- Add Solazyme to My Watchlist.