The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Rofin-Sinar Technologies beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Rofin-Sinar Technologies notched revenue of $147.5 million. The six analysts polled by S&P Capital IQ expected sales of $127.0 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $169.5 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 $0.35. The five earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.35 for Q4 were 41% lower than the prior-year quarter's $0.59 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 34.7%, 90 basis points worse than the prior-year quarter. Operating margin was 10.5%, 240 basis points worse than the prior-year quarter. Net margin was 6.8%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $130.2 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $562.7 million. The average EPS estimate is $1.59.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,203 members out of 1,227 rating the stock outperform, and 24 members rating it underperform. Among 369 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 367 give Rofin-Sinar Technologies a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rofin-Sinar Technologies is outperform, with an average price target of $25.68.
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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. The Motley Fool owns shares of Rofin-Sinar Technologies. Motley Fool newsletter services recommend Rofin-Sinar Technologies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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