Orbotech Beats on Both Top and Bottom Lines
Orbotech (NAS: ORBK) reported earnings on May 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Orbotech beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins contracted.
Orbotech tallied revenue of $100.2 million. The six analysts polled by S&P Capital IQ predicted a top line of $95.6 million on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $134.2 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 $0.07. The six earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. GAAP EPS of $0.04 for Q1 were 87% lower than the prior-year quarter's $0.30 per share. (The prior-year quarter included $0.00 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.7%, 320 basis points better than the prior-year quarter. Operating margin was 5.0%, 620 basis points worse than the prior-year quarter. Net margin was 1.6%, 670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $101.6 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $497.4 million. The average EPS estimate is $1.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 97 members out of 102 rating the stock outperform, and five members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Orbotech a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Orbotech is outperform, with an average price target of $13.90.
Over the decades, small-cap stocks, like Orbotech 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 Orbotech to My Watchlist.
At the time this article 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.