The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Nanometrics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank significantly. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins shrank across the board.
Nanometrics tallied revenue of $43.9 million. The six analysts polled by S&P Capital IQ predicted net sales of $42.7 million on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $58.3 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 $0.10. The six earnings estimates compiled by S&P Capital IQ forecast -$0.02 per share. GAAP EPS of $0.08 for Q3 were 75% lower than the prior-year quarter's $0.32 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 51.8%, 110 basis points worse than the prior-year quarter. Operating margin was 8.2%, 1,200 basis points worse than the prior-year quarter. Net margin was 4.3%, 880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $30.0 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $182.6 million. The average EPS estimate is $0.20.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nanometrics is outperform, with an average price target of $17.50.
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