Advanced Energy Industries Beats on Both Top and Bottom Lines

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Advanced Energy Industries (NAS: AEIS) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Advanced Energy Industries beat expectations on revenues and beat expectations on earnings per share.

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


Margins contracted across the board.

Revenue details
Advanced Energy Industries reported revenue of $105.8 million. The nine analysts polled by S&P Capital IQ looked for sales of $100.1 million on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $137.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.06. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. GAAP EPS of $0.03 for Q1 were 93% lower than the prior-year quarter's $0.43 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 37.6%, 750 basis points worse than the prior-year quarter. Operating margin was 3.0%, 1,470 basis points worse than the prior-year quarter. Net margin was 1.0%, 1,270 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $112.9 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $477.0 million. The average EPS estimate is $0.66.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 226 members out of 238 rating the stock outperform, and 12 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Advanced Energy Industries a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Advanced Energy Industries is hold, with an average price target of $11.25.

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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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