Fool Checkup: Affymetrix Earnings

Seth Jayson, The Motley Fool
Updated

Affymetrix (NAS: AFFX) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Affymetrix met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share expanded.


Gross margins shrank, operating margins dropped, net margins increased.

Revenue details
Affymetrix logged revenue of $66.4 million. The 13 analysts polled by S&P Capital IQ looked for revenue of $67.1 million on the same basis. GAAP reported sales were 2.7% higher than the prior-year quarter's $64.7 million.

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 -$0.02. The 15 earnings estimates compiled by S&P Capital IQ forecast -$0.08 per share. GAAP EPS were $0.43 for Q2 compared to -$0.05 per share for the prior-year quarter.

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 58.3%, 180 basis points worse than the prior-year quarter. Operating margin was -23.2%, 1,840 basis points worse than the prior-year quarter. Net margin was 46.5%, 5,220 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $85.7 million. On the bottom line, the average EPS estimate is -$0.03.

Next year's average estimate for revenue is $308.8 million. The average EPS estimate is -$0.18.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 348 members out of 411 rating the stock outperform, and 63 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Affymetrix a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Affymetrix is hold, with an average price target of $5.38.

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The article Fool Checkup: Affymetrix Earnings 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 the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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