Cray (NAS: CRAY) reported earnings on Feb. 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cray beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins dropped, and net margins expanded.
Cray booked revenue of $91.6 million. The three analysts polled by S&P Capital IQ anticipated a top line of $89.1 million on the same basis. GAAP reported sales were 58% lower than the prior-year quarter's $219.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.85. The two earnings estimates compiled by S&P Capital IQ predicted $0.23 per share on the same basis. GAAP EPS of $0.80 for Q4 were 45% lower than the prior-year quarter's $1.46 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.4%, 140 basis points better than the prior-year quarter. Operating margin was 18.7%, 590 basis points worse than the prior-year quarter. Net margin was 33.9%, 1,020 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $99.5 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $404.2 million. The average EPS estimate is $0.60.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 138 members rating the stock outperform and 27 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Cray a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cray is buy, with an average price target of $8.75.
Over the decades, small-cap stocks, like Cray 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.
Add Cray to My Watchlist.
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.