On Aug. 4, Ceradyne (NASDAQ:CRDN) released Q2 2006 earnings for the period ended June 30.

  • Revenue increased 80%, and earnings more than doubled.
  • There was major margin expansion: 3 percentage points at the gross level, and nearly 6 percentage points at operating profit and net profit.
  • Earnings were slashed by a full $0.05 per share for options granted from 1997 through 2003.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$167,400

$162,016

$89,903

80.2%

Net Profit

--

$30,031

$11,400

163.4%

EPS

$1.05

$1.10

$0.46

139.1%

Diluted Shares

--

27,340

24,926

9.7%



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin

39.31%

36.21%

3.1

Operating Margin

28.36%

22.38%

5.98

Net Margin

18.54%

12.68%

5.86

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$126,976

$10,572

1,101.1%

Other Current Liabilities

$198,136

$134,015

47.8%



Liabilities

Q2 2006

Q2 2005

Change

Current Liabilities

$66,204

$55,198

19.9%

Long-Term Debt

$121,000

$108,075

12%



Learn the ways of the balance sheet.

Cash Flow Highlights

Q2 2006

Q2 2005

Change

Cash From Ops.

No Data

$10,767

N/A

Capital Expenditures

No Data

$9,667

N/A

Free Cash Flow

No Data

$1,100

N/A



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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Seth Jayson had shares of Ceradyne but no positions in any other firm mentioned. Fool rules are here.