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.
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 Solazyme. 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.