Nam Tai Electronics Misses Estimates

Seth Jayson, The Motley Fool
Updated

Nam Tai Electronics (NYS: NTE) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Nam Tai Electronics missed estimates on revenue and missed expectations on earnings per share.

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

Margins shrank across the board.

Revenue details
Nam Tai Electronics tallied revenue of $147.4 million. The one analyst polled by S&P Capital IQ hoped for sales of $156.8 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $166.5 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 $0.02. The one earnings estimate compiled by S&P Capital IQ averaged $0.06 per share on the same basis. GAAP EPS were -$0.13 for Q3 compared to $0.11 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 1.6%, 690 basis points worse than the prior-year quarter. Operating margin was -6.6%, 960 basis points worse than the prior-year quarter. Net margin was -3.9%, 710 basis points worse than the prior-year quarter.

Looking ahead

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 762 members out of 792 rating the stock outperform, and 30 members rating it underperform. Among 254 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 246 give Nam Tai Electronics a green thumbs-up, and eight give it a red thumbs-down.

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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. The Motley Fool owns shares of Nam Tai Electronics. Motley Fool newsletter services have recommended buying shares of Nam Tai Electronics. 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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