Power-One Beats on EPS But GAAP Results Lag
Power-One (NAS: PWER) reported earnings on Feb. 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 1 (Q4), Power-One beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Power-One notched revenue of $266.8 million. The 14 analysts polled by S&P Capital IQ wanted to see a top line of $239.4 million. Sales were 27% lower than the prior-year quarter's $366.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.24. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.13 per share on the same basis. GAAP EPS of $0.21 for Q4 were 40% lower than the prior-year quarter's $0.35 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 27.1%, 1,360 basis points worse than the prior-year quarter. Operating margin was 13.1%, 1,850 basis points worse than the prior-year quarter. Net margin was 12.1%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $225.8 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $0.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 613 members out of 648 rating the stock outperform, and 35 members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 138 give Power-One a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Power-One is outperform, with an average price target of $6.45.
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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. The Motley Fool owns shares of Power-One. 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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