Cray (Nasdaq: CRAY) is expected to report Q1 earnings on May 1. 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 Cray's revenues will contract -37.4% and EPS will shrink to a loss.
The average estimate for revenue is $70.3 million. On the bottom line, the average EPS estimate is -$0.24.
Revenue details
Last quarter, Cray reported revenue of $188.8 million. 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
Last quarter, non-GAAP EPS came in at $0.44. GAAP EPS of $0.37 for Q4 were 57% 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.
Recent performance
For the preceding quarter, gross margin was 28.7%, 970 basis points worse than the prior-year quarter. Operating margin was 9.0%, 970 basis points worse than the prior-year quarter. Net margin was 7.4%, much worse than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $498.2 million. The average EPS estimate is $0.46.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 154 members out of 185 rating the stock outperform, and 31 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Cray a green thumbs-up, and seven 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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