Nanometrics Beats Expectations but Takes a Step Back Anyway

Seth Jayson, The Motley Fool
Updated

Nanometrics (NAS: NANO) reported earnings on Feb. 8. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
Nanometrics booked revenue of $45.3 million. The six analysts polled by S&P Capital IQ looked for revenue of $41.7 million. GAAP sales were 1.8% lower than the prior-year quarter's $46.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.08. The five earnings estimates compiled by S&P Capital IQ averaged $0.01 per share on the same basis. GAAP EPS were -$0.02 for Q4 compared to $1.12 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.6%, 610 basis points worse than the prior-year quarter. Operating margin was 4.4%, 1,440 basis points worse than the prior-year quarter. Net margin was -1.2%, 5,780 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $50.1 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $234.1 million. The average EPS estimate is $1.09.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nanometrics is outperform, with an average price target of $21.00.

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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.

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