Rubicon Technology Beats on EPS But GAAP Results Lag

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Rubicon Technology (NAS: RBCN) reported earnings on Nov. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Rubicon Technology met 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. The profit was a surprise, as analysts had predicted a loss.


Margins dropped across the board.

Revenue details
Rubicon Technology booked revenue of $19.9 million. The 12 analysts polled by S&P Capital IQ wanted to see a top line of $19.7 million on the same basis. GAAP reported sales were 41% lower than the prior-year quarter's $33.6 million.

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 $0.01. The 11 earnings estimates compiled by S&P Capital IQ averaged -$0.03 per share. GAAP EPS of $0.01 for Q3 were 97% lower than the prior-year quarter's $0.35 per share.

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 12.3%, 3,560 basis points worse than the prior-year quarter. Operating margin was -5.7%, 4,100 basis points worse than the prior-year quarter. Net margin was 1.4%, 2,290 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $25.4 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $72.3 million. The average EPS estimate is -$0.21.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 156 members out of 189 rating the stock outperform, and 33 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Rubicon Technology a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rubicon Technology is outperform, with an average price target of $11.60.

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The article Rubicon Technology Beats on EPS But GAAP Results Lag originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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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