Cabot Microelectronics Earnings: Here’s Why the Stock is Rising Now

Cabot Microelectronics Corp. (NASDAQ:CCMP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 5.31%.

Cabot Microelectronics Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.09% to $0.60 in the quarter versus EPS of $0.55 in the year-earlier quarter.

Revenue: Decreased 4.91% to $110 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cabot Microelectronics Corp. reported adjusted EPS income of $0.60 per share. By that measure, the company beat the mean analyst estimate of $0.58. It missed the average revenue estimate of $115.93 million.

Quoting Management: “We are pleased with our strong financial performance this quarter, which we believe reflects the continued successful execution of our strategic business initiatives, coupled with strengthening of overall semiconductor industry demand that we had anticipated to occur during the quarter,” said William Noglows, Chairman and CEO of Cabot Microelectronics. “Our revenue grew by almost 10 percent sequentially, and notably, revenue from our Pads business grew by 14 percent compared to the prior period. Additionally, we achieved strong profitability as our gross margin of 49.7 percent of revenue and diluted earnings per share of 65 cents were each at the highest quarterly levels since the December quarter of 2010. Heading into what is typically a seasonally strong fourth fiscal quarter, I am confident that we are well-positioned to continue to develop and deliver innovative, high-quality solutions to our customers and continue to provide value for our shareholders.”

Key Stats (on next page)…

Revenue increased 9.61% from $100.36 million in the previous quarter. EPS increased 50% from $0.40 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.62 to a profit $0.60. For the current year, the average estimate is a profit of $2.07, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)