The 10-second takeaway
For the quarter ended Sep. 23 (Q1), International Rectifier beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
International Rectifier booked revenue of $252.5 million. The eight analysts polled by S&P Capital IQ hoped for sales of $242.4 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $302.7 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 -$0.20. The nine earnings estimates compiled by S&P Capital IQ anticipated -$0.25 per share. GAAP EPS were -$0.42 for Q1 compared to $0.31 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 27.9%, 1,000 basis points worse than the prior-year quarter. Operating margin was -4.7%, 1,470 basis points worse than the prior-year quarter. Net margin was -11.4%, 1,870 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $241.9 million. On the bottom line, the average EPS estimate is -$0.22.
Next year's average estimate for revenue is $996.7 million. The average EPS estimate is -$0.57.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 142 members out of 159 rating the stock outperform, and 17 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give International Rectifier a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on International Rectifier is outperform, with an average price target of $20.60.
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