The 10-second takeaway
For the quarter ended June 30 (Q3), Cabot Microelectronics missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share expanded significantly.
Margins increased across the board.
Cabot Microelectronics reported revenue of $110.0 million. The four analysts polled by S&P Capital IQ anticipated sales of $114.6 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 $0.65. The four earnings estimates compiled by S&P Capital IQ anticipated $0.58 per share. GAAP EPS of $0.65 for Q3 were 18% higher than the prior-year quarter's $0.55 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 49.7%, 200 basis points better than the prior-year quarter. Operating margin was 20.2%, 150 basis points better than the prior-year quarter. Net margin was 14.1%, 270 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $115.1 million. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $436.5 million. The average EPS estimate is $2.06.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 36 members out of 41 rating the stock outperform, and five members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 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 $38.67.
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