Rofin-Sinar Technologies Misses on the Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Rofin-Sinar Technologies (NAS: RSTI) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Rofin-Sinar Technologies missed estimates on revenues and missed expectations on earnings per share.

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

Margins shrank across the board.

Revenue details
Rofin-Sinar Technologies booked revenue of $131.6 million. The four analysts polled by S&P Capital IQ expected revenue of $140.3 million. Sales were 4.1% lower than the prior-year quarter's $137.1 million.

anImage
anImage

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

EPS details
EPS came in at $0.28. The four earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. GAAP EPS of $0.28 for Q1 were 45% lower than the prior-year quarter's $0.51 per share.

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 35.7%, 540 basis points worse than the prior-year quarter. Operating margin was 8.4%, 730 basis points worse than the prior-year quarter. Net margin was 6.1%, 470 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $142 million. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $585.9 million. The average EPS estimate is $1.70.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,232 members rating the stock outperform, and 24 members rating it underperform. Among 463 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 461 give Rofin-Sinar Technologies a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rofin-Sinar Technologies is outperform, with an average price target of $29.70.

Over the decades, small-cap stocks, like Rofin-Sinar Technologies 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. The Motley Fool owns shares of Rofin-Sinar Technologies. Motley Fool newsletter services have recommended buying shares of Rofin-Sinar Technologies. 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