MEMC Electronic Materials
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MEMC Electronic Materials crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share grew. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins increased across the board.
MEMC Electronic Materials reported revenue of $708.9 million. The 15 analysts polled by S&P Capital IQ looked for revenue of $508.0 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $516.2 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 $0.30. The 17 earnings estimates compiled by S&P Capital IQ anticipated -$0.12 per share. GAAP EPS were $0.16 for Q3 versus -$0.41 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 14.4%, 300 basis points better than the prior-year quarter. Operating margin was 0.1%, 930 basis points better than the prior-year quarter. Net margin was 6.2%, 2,450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $739.0 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $2.68 billion. The average EPS estimate is -$0.18.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,801 members out of 1,870 rating the stock outperform, and 69 members rating it underperform. Among 361 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 341 give MEMC Electronic Materials a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MEMC Electronic Materials is hold, with an average price target of $4.40.
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