Supertex Whiffs on Earnings

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Supertex (NAS: SUPX) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Supertex met expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly, and earnings per share shrank significantly.

Margins shrank across the board.

Revenue details
Supertex tallied revenue of $14 million. The six analysts polled by S&P Capital IQ foresaw revenue of $14 million. Sales were 29% lower than the prior-year quarter's $20 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.01. The five earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS of $0.01 for Q3 were 95% lower than the prior-year quarter's $0.22 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.1%, 1,440 basis points worse than the prior-year quarter. Operating margin was -9.9%, 2,590 basis points worse than the prior-year quarter. Net margin was 0.7%, 1,380 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $14 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $63 million. The average EPS estimate is $0.32.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 94 members out of 105 rating the stock outperform, and 11 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Supertex a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Supertex is hold, with an average price target of $21.50.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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