The 10-second takeaway
For the quarter ended March 31 (Q2), Rofin-Sinar Technologies missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share shrank.
Margins dropped across the board.
Rofin-Sinar Technologies reported revenue of $131.1 million. The five analysts polled by S&P Capital IQ looked for sales of $135.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.26. The five earnings estimates compiled by S&P Capital IQ averaged $0.28 per share. GAAP EPS of $0.26 for Q2 were 7.1% lower than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.7%, 200 basis points worse than the prior-year quarter. Operating margin was 6.6%, 250 basis points worse than the prior-year quarter. Net margin was 5.6%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $138.9 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $551.1 million. The average EPS estimate is $1.25.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,176 members out of 1,201 rating the stock outperform, and 25 members rating it underperform. Among 335 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 333 give Rofin-Sinar Technologies 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 Rofin-Sinar Technologies is outperform, with an average price target of $25.85.
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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 recommends Rofin-Sinar Technologies. The Motley Fool owns shares of Rofin-Sinar Technologies. 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.