FEI Earnings: Here’s Why Investors are Ambivalent Now

FEI Co. (NASDAQ:FEIC) 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.

FEI Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 2.7% to $0.72 in the quarter versus EPS of $0.74 in the year-earlier quarter.

Revenue: Rose 0.47% to $222.48 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: FEI Co. reported adjusted EPS income of $0.72 per share. By that measure, the company beat the mean analyst estimate of $0.67. It missed the average revenue estimate of $227.4 million.

Quoting Management: “With these three systems we have now introduced an unprecedented total of six new TEMs in the past year,” said Benjamin Loh, FEI’s executive vice president and chief operating officer. “All six have been designed and built to provide an application-specific workflow that delivers contextual information of immediate value to users in science and industrial market segments, including: materials science, chemicals, life sciences, and semiconductor manufacturing. Our goal is to completely change the world of TEM so our customers can change their world as well.”

Key Stats (on next page)…

Revenue increased 0.58% from $221.19 million in the previous quarter. EPS increased 10.77% from $0.65 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 $0.83 to a profit $0.82. For the current year, the average estimate is a profit of $3.07, 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)

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