The Gory Details on Coherent's Double Miss
Coherent (NAS: COHR) reported earnings on Jan. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Coherent missed slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share shrank.
Margins dropped across the board.
Coherent recorded revenue of $190.8 million. The two analysts polled by S&P Capital IQ expected to see revenue of $194.4 million. Sales were 4.2% higher than the prior-year quarter's $183.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.82. The five earnings estimates compiled by S&P Capital IQ averaged $0.82 per share on the same basis. GAAP EPS of $0.71 for Q1 were 6.6% lower than the prior-year quarter's $0.76 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 42.1%, 290 basis points worse than the prior-year quarter. Operating margin was 13.3%, 70 basis points worse than the prior-year quarter. Net margin was 8.9%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $206.3 million. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $833 million. The average EPS estimate is $3.72.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 78 members out of 90 rating the stock outperform, and 12 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Coherent a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coherent is outperform, with an average price target of $63.83.
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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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