The 10-second takeaway
For the quarter ended March 31 (Q1), Cray beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share contracted to a loss.
Margins contracted across the board.
Cray reported revenue of $79.5 million. The three analysts polled by S&P Capital IQ anticipated revenue of $70.3 million on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $112.3 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 -$0.23. The three earnings estimates compiled by S&P Capital IQ predicted -$0.24 per share. Non-GAAP EPS were -$0.23 for Q1 versus $0.13 per share for the prior-year quarter. GAAP EPS were -$0.20 for Q1 versus $0.13 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 30.4%, 980 basis points worse than the prior-year quarter. Operating margin was -16.0%, much worse than the prior-year quarter. Net margin was -9.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $87.5 million. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $498.2 million. The average EPS estimate is $0.46.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 154 members out of 186 rating the stock outperform, and 32 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 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 $19.33.
Is Cray the best tech stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Cray to My Watchlist.