The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Brooks Automation beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Brooks Automation logged revenue of $98.0 million. The six analysts polled by S&P Capital IQ foresaw revenue of $90.7 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $120.2 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 -$0.06. The seven earnings estimates compiled by S&P Capital IQ anticipated -$0.11 per share. GAAP EPS were -$0.14 for Q1 compared to $0.05 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 29.7%, 390 basis points worse than the prior-year quarter. Operating margin was -8.5%, 1,010 basis points worse than the prior-year quarter. Net margin was -9.4%, 1,190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $107.8 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $465.3 million. The average EPS estimate is $0.09.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 188 members out of 207 rating the stock outperform, and 19 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Brooks Automation a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brooks Automation is hold, with an average price target of $8.29.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Brooks Automation. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Brooks Automation 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. The Motley Fool has no position in any of the stocks mentioned. 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.
More from The Motley Fool
Is This a Top Life Sciences Stock to Buy on Sale?
The life sciences industry is growing quickly and that may lead to market-beating returns for this company.
Why Shares of Brooks Automation Slumped Today
A solid quarter and good guidance weren't enough to prevent a plunge.
Why Brooks Automation, Inc's Shares Popped 19% Today
A great earnings report could be a sign of good things to come for investors.