Cray Misses Where it Counts

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 14, 2013 at 12:00AM
Other

Cray (Nasdaq: CRAY) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cray met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Cray reported revenue of $188.8 million. The three analysts polled by S&P Capital IQ predicted revenue of $187.6 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $91.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.44. The two earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.36 for Q4 were 58% lower than the prior-year quarter's $0.86 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.7%, 970 basis points worse than the prior-year quarter. Operating margin was 8.6%, 1,010 basis points worse than the prior-year quarter. Net margin was 7.4%, 2,650 basis points worse than the prior-year quarter.


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Looking ahead
Next quarter's average estimate for revenue is $60.3 million. On the bottom line, the average EPS estimate is -$0.36.

Next year's average estimate for revenue is $498.2 million. The average EPS estimate is $0.31.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 145 members out of 176 rating the stock outperform, and 31 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Cray a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cray is outperform, with an average price target of $15.75.

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