Cray Earnings: Here’s Why Investors Like These Results

Cray Inc. (NASDAQ:CRAY) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.33%.

Cray Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.44 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Rose 106.23% to $188.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cray Inc. reported adjusted EPS income of $0.44 per share. By that measure, the company missed the mean analyst estimate of $0.54. It beat the average revenue estimate of $187.59 million.

Quoting Management: “We had a great year across the board in 2012, highlighted by the completion of the largest supercomputer and storage system in our company’s history,” said Peter Ungaro, president and CEO of Cray. “We grew substantially in 2012, posting record revenue and operating profit for the year, and have put ourselves on a path to continue to grow faster than our overall market. With our new cluster solutions and XC30 supercomputer, we’ve expanded our offerings in the supercomputing market, while our storage and Big Data products continue to gain momentum with new customers. I’m excited about our prospects for 2013 and what we’re building for the future.”

Key Stats (on next page)…

Revenue increased 428.26% from $35.74 million in the previous quarter. EPS increased to $0.44 in the quarter versus EPS of $-0.14 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 loss of $0.04 to a loss $0.36. For the current year, the average estimate has moved down from a profit of $4.56 to a profit of $4.38 over the last ninety days.

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