Kopin Earnings Preview

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Investors hope Kopin (NAS: KOPN) will top analyst estimates once again after beating predictions by $0.01 in the previous quarter. The company will unveil its latest earnings Thursday. Kopin. is a developer and manufacturer of III-V products and miniature flat panel displays.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Kopin better than competitor TriQuint Semiconductor overall. Eight out of 12 analysts rate TriQuint Semiconductor a buy compared with two of two for Kopin. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared with three months ago.
  • Revenue forecasts: On average, analysts predict $31.1 million in revenue this quarter. That would represent a rise of 2.8% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.02 per share. Estimates range from breaking even to a profit of $0.04.

What our community says:
CAPS All-Stars are solidly behind the stock with 94.7% assigning it an "outperform" rating. The community at large concurs with the All-Stars with 94.6% giving it a rating of "outperform." Fools have embraced Kopin, though the message boards have been quiet lately with only 71 posts in the past 30 days. Despite the majority sentiment in favor of Kopin, the stock has a middling CAPS rating of three out of five stars.

Management:
Kopin's income has fallen year over year by an average of 11.6%. The company's revenue has now risen for two straight quarters. The company raised its gross margin by 6.1 percentage points in the last quarter. Revenue rose 37.2% while cost of sales rose 25.1% to $21.9 million from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

37.2%

37.5%

33.2%

27.6%

Operating Margin

6.2%

10.6%

5.8%

(2.4%)

Net Margin

5.9%

14.1%

4.3%

6.2%

For all our Kopin-specific analysis, including earnings and beyond, add Kopin to My Watchlist.

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At the time this article was published

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