On Nov. 2, computer maker Gateway
- Sales dropped 5.5% from the year-ago quarter, but GAAP earnings jumped up a penny per share to $0.05.
- CEO Ed Coleman pointed to the professional and retail businesses as highlights of the quarter.
- However, the 1,174,600 PC units sold in Q3 is flat both sequentially and year over year.
- Our Motley Fool CAPS community is firm in its pessimism about the stock's future, giving it a one-star rating.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$963 |
$1,019 |
(5.5%) |
|
Net Profit |
$18 |
$15 |
20.6% |
|
EPS |
$0.05 |
$0.04 |
25% |
|
Diluted Shares |
408 |
406 |
0.3% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
7.62% |
8.31% |
(0.69) |
|
Operating Margin |
0.82% |
1.84% |
(1.02) |
|
Net Margin |
1.89% |
1.48% |
0.41 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$429 |
$635 |
(32.4%) |
|
Accounts Rec. |
$287 |
$321 |
(10.5%) |
|
Inventory |
$122 |
$193 |
(36.7%) |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$516 |
$734 |
(29.8%) |
|
Long-Term Debt |
$300 |
$300 |
0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
What, no cash flow statement from the company? Holy cow.
Find out why Fools always follow the money.
Related Companies:
-
Apple Computer
(NASDAQ:AAPL) -
Dell
(NASDAQ:DELL) -
International Business Machines
(NYSE:IBM)
Related Foolishness:
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