The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Power-One met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Power-One logged revenue of $191.7 million. The seven analysts polled by S&P Capital IQ expected revenue of $192.8 million on the same basis. GAAP reported sales were 28% lower than the prior-year quarter's $266.8 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 -$0.10. The four earnings estimates compiled by S&P Capital IQ anticipated -$0.09 per share. GAAP EPS were -$0.14 for Q4 against $0.21 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 13.4%, 1,370 basis points worse than the prior-year quarter. Operating margin was -7.0%, 2,010 basis points worse than the prior-year quarter. Net margin was -8.9%, 2,100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $196.4 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $933.3 million. The average EPS estimate is $0.36.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 602 members out of 643 rating the stock outperform, and 41 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 112 give Power-One a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Power-One is hold, with an average price target of $5.24.
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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 Power-One. 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.