Power-One Beats on the Top Line
Power-One (NAS: PWER) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 1 (Q2), Power-One crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins contracted, net margins grew.
Power-One logged revenue of $321.5 million. The 13 analysts polled by S&P Capital IQ anticipated a top line of $251.5 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $260.3 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 $0.24. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS of $0.30 for Q2 were 43% higher than the prior-year quarter's $0.21 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 30.3%, 330 basis points worse than the prior-year quarter. Operating margin was 18.6%, 210 basis points worse than the prior-year quarter. Net margin was 14.5%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $237.3 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $960.0 million. The average EPS estimate is $0.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 612 members out of 652 rating the stock outperform, and 40 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give Power-One a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Power-One is outperform, with an average price target of $5.63.
Over the decades, small-cap stocks, like Power-One 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 Power-One to My Watchlist.
The article Power-One Beats on the Top Line originally appeared on Fool.com.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 Power-One. 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.