The 10-second takeaway
For the quarter ended June 29 (Q2), Newport met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share shrank significantly. GAAP earnings per share shrank significantly.
Margins contracted across the board.
Newport reported revenue of $134.2 million. The six analysts polled by S&P Capital IQ looked for revenue of $135.2 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $153.7 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 $0.20. The five earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. Non-GAAP EPS of $0.20 for Q2 were 33% lower than the prior-year quarter's $0.30 per share. GAAP EPS of $0.07 for Q2 were 71% lower than the prior-year quarter's $0.24 per share.
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 42.6%, 90 basis points worse than the prior-year quarter. Operating margin was 4.2%, 320 basis points worse than the prior-year quarter. Net margin was 2.0%, 400 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $142.6 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $562.5 million. The average EPS estimate is $0.96.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 100 members out of 115 rating the stock outperform, and 15 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Newport 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 Newport is buy, with an average price target of $18.48.
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