The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ceradyne missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Ceradyne reported revenue of $106.2 million. The five analysts polled by S&P Capital IQ looked for a top line of $116.2 million on the same basis. GAAP reported sales were 28% lower than the prior-year quarter's $148.0 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 $0.00. The four earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. GAAP EPS were -$0.96 for Q3 compared to $0.82 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 28.6%, 770 basis points worse than the prior-year quarter. Operating margin was 7.3%, 1,400 basis points worse than the prior-year quarter. Net margin was -21.7%, 3,550 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $123.6 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $476.7 million. The average EPS estimate is $0.98.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,205 members out of 1,245 rating the stock outperform, and 40 members rating it underperform. Among 338 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 326 give Ceradyne 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 Ceradyne is hold, with an average price target of $23.40.
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