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What Does Wall Street See for Cabot Microelectronics's Q2?

By Seth Jayson - Updated Apr 10, 2017 at 1:44PM

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Checking expectations

Cabot Microelectronics (Nasdaq: CCMP) is expected to report Q2 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cabot Microelectronics's revenues will increase 5.4% and EPS will grow 28.6%.

The average estimate for revenue is $104.6 million. On the bottom line, the average EPS estimate is $0.45.

Revenue details
Last quarter, Cabot Microelectronics notched revenue of $106.5 million. 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 details
Last quarter, non-GAAP EPS came in at $0.48. 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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $448.7 million. The average EPS estimate is $2.15.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 38 members out of 44 rating the stock outperform, and six members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 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 outperform, with an average price target of $35.67.

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Cabot Microelectronics Corporation Stock Quote
Cabot Microelectronics Corporation
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