The 10-second takeaway
For the quarter ended June 30 (Q2), Affymetrix beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew. GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins expanded, net margins dropped.
Affymetrix logged revenue of $79.5 million. The 11 analysts polled by S&P Capital IQ hoped for sales of $78.5 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $66.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.04. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.00 per share. Non-GAAP EPS were $0.04 for Q2 versus -$0.02 per share for the prior-year quarter. GAAP EPS were -$0.09 for Q2 compared to $0.43 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 53.1%, 160 basis points better than the prior-year quarter. Operating margin was -4.2%, 470 basis points better than the prior-year quarter. Net margin was -7.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $78.6 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $318.7 million. The average EPS estimate is $0.02.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 341 members out of 405 rating the stock outperform, and 64 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give Affymetrix a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Affymetrix is hold, with an average price target of $4.67.
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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. 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.