Kulicke and Soffa Industries Earnings Preview

Motley Fool Staff
Updated

Watch Kulicke and Soffa Industries' (NAS: KLIC) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Tuesday, August 2. Kulicke & Soffa Industries designs, manufactures and sells capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits, high and low powered discrete devices, LEDs, and power modules.

What analysts say:

  • Buy, sell, or hold?: Analysts are bullish on this stock with two analysts rating it as a buy and only one rating it as a sell. Analysts don't like Kulicke and Soffa Industries as much as competitor Rudolph Technologies overall. Wall Street has warmed to the stock over the past three months, with analysts increasing their endorsement from hold to moderate buy.

  • Revenue Forecasts: On average, analysts predict $264.9 million in revenue this quarter. That would represent a rise of 19.7% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.85 per share. Estimates range from $0.83 to $0.86.

What our community says:
CAPS All-Stars are solidly behind the stock with 97% assigning it an "outperform" rating. The community at large agrees with the All-Stars with 94.3% giving it a rating of "outperform." Fools are gung-ho about Kulicke and Soffa Industries, though the message boards have been quiet lately with only 90 posts in the past 30 days. Even with a robust four out of five stars, Kulicke and Soffa Industries' CAPS rating falls a little short of the community's upbeat outlook.

Management:
Kulicke and Soffa Industries' profit has risen year over year by an average of 97.9%. The company raised its gross margin by 3.8 percentage points in the last quarter. Revenue rose 34.4% while cost of sales rose 25.2% to $107.8 million from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

47.9%

48.4%

43.3%

44.8%

Operating Margin

21.1%

14.8%

21.9%

22.6%

Net Margin

19.3%

10.1%

21.6%

22.2%

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add Kulicke and Soffa Industries now.

The Motley Fool owns shares of Kulicke & Soffa Industries.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.

At the time thisarticle was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement