Cabot Microelectronics Misses on the Top and Bottom Lines

Cabot Microelectronics (NAS: CCMP) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Cabot Microelectronics missed estimates on revenues and missed estimates on earnings per share.

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

Margins increased across the board.

Revenue details
Cabot Microelectronics booked revenue of $110.6 million. The three analysts polled by S&P Capital IQ looked for a top line of $119.2 million on the same basis. GAAP reported sales were 0.8% higher than the prior-year quarter's $109.7 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 $0.49. The three earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.49 for Q4 were 23% higher than the prior-year quarter's $0.40 per share.

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 48.6%, 220 basis points better than the prior-year quarter. Operating margin was 18.5%, 310 basis points better than the prior-year quarter. Net margin was 10.5%, 200 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $109.1 million. On the bottom line, the average EPS estimate is $0.50.

Next year's average estimate for revenue is $464.5 million. The average EPS estimate is $2.40.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 39 members out of 44 rating the stock outperform, and five members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Cabot Microelectronics a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cabot Microelectronics is outperform, with an average price target of $41.33.

Is Cabot Microelectronics the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

• Add Cabot Microelectronics to My Watchlist.

The article Cabot Microelectronics Misses on the Top and Bottom Lines 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. TMFDisclosureHere

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.