MEMC Electronic Materials Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

MEMC Electronic Materials (NYS: WFR) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), MEMC Electronic Materials beat slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP loss per share dropped. GAAP loss per share didn't move.


Gross margins expanded, operating margins grew, net margins dropped.

Revenue details
 MEMC Electronic Materials tallied revenue of $431.3 million. The 14 analysts polled by S&P Capital IQ expected net sales of $423.1 million on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $519.2 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 -$0.16. The 15 earnings estimates compiled by S&P Capital IQ forecast -$0.14 per share. Non-GAAP EPS were -$0.16 for Q1 versus -$0.26 per share for the prior-year quarter. GAAP EPS of -$0.40 were the same as 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 11.2%, 30 basis points better than the prior-year quarter. Operating margin was -8.6%, 70 basis points better than the prior-year quarter. Net margin was -20.2%, 250 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $585.6 million. On the bottom line, the average EPS estimate is -$0.02.

Next year's average estimate for revenue is $2.78 billion. The average EPS estimate is $0.23.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,784 members out of 1,855 rating the stock outperform, and 71 members rating it underperform. Among 328 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 307 give MEMC Electronic Materials a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MEMC Electronic Materials is outperform, with an average price target of $5.86.

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The article MEMC Electronic Materials Misses Where it Counts 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 has no position in any of the stocks mentioned. 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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