The 10-second takeaway
For the quarter ended June 29 (Q2), Nanometrics beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share shrank to a loss. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Nanometrics tallied revenue of $34.6 million. The five analysts polled by S&P Capital IQ expected to see sales of $32.3 million on the same basis. GAAP reported sales were 35% lower than the prior-year quarter's $53.2 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 -$0.17. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.20 per share. Non-GAAP EPS were -$0.17 for Q2 compared to $0.13 per share for the prior-year quarter. GAAP EPS were -$0.20 for Q2 against $0.19 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 43.8%, 400 basis points worse than the prior-year quarter. Operating margin was -17.8%, much worse than the prior-year quarter. Net margin was -13.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $38.3 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $145.0 million. The average EPS estimate is -$0.45.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nanometrics is outperform, with an average price target of $17.10.
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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.