The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Newport met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins grew, net margins dropped.
Newport chalked up revenue of $141.6 million. The six analysts polled by S&P Capital IQ predicted sales of $143.4 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $160.9 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 $0.37. The five earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. Non-GAAP EPS of $0.37 for Q4 were 48% higher than the prior-year quarter's $0.25 per share. GAAP EPS were -$2.94 for Q4 versus $0.89 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 44.4%, 310 basis points better than the prior-year quarter. Operating margin was 10.3%, 340 basis points better than the prior-year quarter. Net margin was -79.6%, 10,110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $141.2 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $599.8 million. The average EPS estimate is $1.37.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 105 members out of 120 rating the stock outperform, and 15 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Newport a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Newport is outperform, with an average price target of $16.72.
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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 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.