Cabot Microelectronics Beats on Both Top and Bottom Lines

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Cabot Microelectronics (NAS: CCMP) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Cabot Microelectronics beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted.


Gross margins dropped, operating margins increased, net margins dropped.

Revenue details
Cabot Microelectronics reported revenue of $106.5 million. The four analysts polled by S&P Capital IQ hoped for a top line of $103.6 million on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $102.1 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 $0.48. The four earnings estimates compiled by S&P Capital IQ forecast $0.43 per share. GAAP EPS of $0.41 for Q1 were 8.9% lower than the prior-year quarter's $0.45 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 47.0%, 130 basis points worse than the prior-year quarter. Operating margin was 15.6%, 60 basis points better than the prior-year quarter. Net margin was 9.1%, 110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $101.7 million. On the bottom line, the average EPS estimate is $0.41.

Next year's average estimate for revenue is $439.9 million. The average EPS estimate is $2.05.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 38 members out of 43 rating the stock outperform, and five members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Cabot Microelectronics 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 Cabot Microelectronics is hold, with an average price target of $35.67.

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The article Cabot Microelectronics Beats on Both Top and Bottom Lines 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. TMFDisclosureHere

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