Intevac Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Intevac (NAS: IVAC) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Intevac beat slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly, and GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Intevac chalked up revenue of $18.6 million. The three analysts polled by S&P Capital IQ looked for a top line of $18.3 million. Sales were 48% lower than the prior-year quarter's $36.2 million.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at -$0.27. The three earnings estimates compiled by S&P Capital IQ anticipated -$0.27 per share. GAAP EPS were -$0.27 for Q4 compared to $0.04 per share for the prior-year quarter.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 34.3%, 600 basis points worse than the prior-year quarter. Operating margin was -45.5%, 4,630 basis points worse than the prior-year quarter. Net margin was -33.3%, 3,640 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $17.7 million. On the bottom line, the average EPS estimate is -$0.26.

Next year's average estimate for revenue is $123.4 million. The average EPS estimate is -$0.37.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 204 members rating the stock outperform, and 16 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Intevac a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Intevac is outperform, with an average price target of $13.

Over the decades, small-cap stocks, like Intevac have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

At the time thisarticle 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement