The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Cabot Microelectronics missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share increased significantly.
Margins increased across the board.
Cabot Microelectronics booked revenue of $110.6 million. The three analysts polled by S&P Capital IQ looked for a top line of $119.2 million on the same basis. GAAP reported sales were 0.8% higher than the prior-year quarter's $109.7 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 $0.49. The three earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.49 for Q4 were 23% higher than the prior-year quarter's $0.40 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 48.6%, 220 basis points better than the prior-year quarter. Operating margin was 18.5%, 310 basis points better than the prior-year quarter. Net margin was 10.5%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $109.1 million. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $464.5 million. The average EPS estimate is $2.40.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 39 members out of 44 rating the stock outperform, and five members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Cabot Microelectronics 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 Cabot Microelectronics is outperform, with an average price target of $41.33.
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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 co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere