International Rectifier (NYS: IRF) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 25 (Q3), International Rectifier beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
International Rectifier chalked up revenue of $248.1 million. The six analysts polled by S&P Capital IQ anticipated revenue of $242.2 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $296.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.21. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.18 per share. GAAP EPS were -$0.04 for Q3 compared to $0.69 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.8%, 970 basis points worse than the prior-year quarter. Operating margin was -5.0%, 1,790 basis points worse than the prior-year quarter. Net margin was -1.0%, 1,770 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $262.9 million. On the bottom line, the average EPS estimate is -$0.14.
Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is -$0.09.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 148 members out of 165 rating the stock outperform, and 17 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give International Rectifier a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on International Rectifier is outperform, with an average price target of $24.00.
Over the decades, small-cap stocks, like International Rectifier 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 International Rectifier 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.