The 10-second takeaway
For the quarter ended June 30 (Q2), Cray beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share shrank to a loss. GAAP earnings per share shrank to zero.
Margins contracted across the board.
Cray reported revenue of $84.5 million. The four analysts polled by S&P Capital IQ looked for sales of $79.8 million on the same basis. GAAP reported sales were 0.3% higher than the prior-year quarter's $84.2 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 -$0.19. The four earnings estimates compiled by S&P Capital IQ forecast -$0.20 per share. Non-GAAP EPS were -$0.19 for Q2 versus $0.22 per share for the prior-year quarter. GAAP EPS dropped to zero from the prior-year quarter's $3.91.
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 31.7%, 930 basis points worse than the prior-year quarter. Operating margin was -11.6%, much worse than the prior-year quarter. Net margin was -0.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $117.5 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $500.5 million. The average EPS estimate is $0.53.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 160 members out of 187 rating the stock outperform, and 27 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 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 $24.17.
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