The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Cabot Microelectronics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted.
Gross margins dropped, operating margins increased, net margins dropped.
Cabot Microelectronics reported revenue of $106.5 million. The four analysts polled by S&P Capital IQ hoped for a top line of $103.6 million on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $102.1 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 $0.48. The four earnings estimates compiled by S&P Capital IQ forecast $0.43 per share. GAAP EPS of $0.41 for Q1 were 8.9% lower than the prior-year quarter's $0.45 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 47.0%, 130 basis points worse than the prior-year quarter. Operating margin was 15.6%, 60 basis points better than the prior-year quarter. Net margin was 9.1%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $101.7 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $439.9 million. The average EPS estimate is $2.05.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 38 members out of 43 rating the stock outperform, and five members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Cabot Microelectronics a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cabot Microelectronics is hold, with an average price target of $35.67.
Is Cabot Microelectronics your best play in technology? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
- Add Cabot Microelectronics to My Watchlist.
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. TMFDisclosureHere