International Rectifier Goes Red

Seth Jayson, The Motley Fool
Updated

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.

Revenue details
 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.

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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
 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.

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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 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.

Looking ahead
 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.

Investor sentiment
 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.

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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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