Fool Cheatsheet: Novellus Systems Earnings

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Novellus Systems (NAS: NVLS) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Novellus Systems beat slightly on revenue and missed expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Novellus Systems reported revenue of $282.7 million. The 15 analysts polled by S&P Capital IQ wanted to see a top line of $278.3 million. Sales were 26% lower than the prior-year quarter's $384.4 million.

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

EPS details
Non-GAAP EPS came in at $0.45. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share on the same basis. GAAP EPS of $0.56 for Q4 were 37% lower than the prior-year quarter's $0.89 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 46.8%, 370 basis points worse than the prior-year quarter. Operating margin was 18.2%, 500 basis points worse than the prior-year quarter. Net margin was 13.6%, 760 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $290.4 million. On the bottom line, the average EPS estimate is $0.55.

Next year's average estimate for revenue is $1.24 billion. The average EPS estimate is $2.93.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 142 members out of 177 rating the stock outperform, and 35 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Novellus Systems a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Novellus Systems is hold, with an average price target of $42.45.

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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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