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Rubicon Technology Beats on EPS But GAAP Results Lag

By Seth Jayson - Updated Apr 7, 2017 at 11:51AM

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Just the facts, Fool.

Rubicon Technology (Nasdaq: RBCN) reported earnings on Nov. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Rubicon Technology met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly. The profit was a surprise, as analysts had predicted a loss.

Margins dropped across the board.

Revenue details
Rubicon Technology booked revenue of $19.9 million. The 12 analysts polled by S&P Capital IQ wanted to see a top line of $19.7 million on the same basis. GAAP reported sales were 41% lower than the prior-year quarter's $33.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.01. The 11 earnings estimates compiled by S&P Capital IQ averaged -$0.03 per share. GAAP EPS of $0.01 for Q3 were 97% lower than the prior-year quarter's $0.35 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 12.3%, 3,560 basis points worse than the prior-year quarter. Operating margin was -5.7%, 4,100 basis points worse than the prior-year quarter. Net margin was 1.4%, 2,290 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $25.4 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $72.3 million. The average EPS estimate is -$0.21.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 156 members out of 189 rating the stock outperform, and 33 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Rubicon Technology a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rubicon Technology is outperform, with an average price target of $11.60.

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