GT Advance Technologies Earnings: Here’s Why Investors are Excited Now

GT Advance Technologies Inc. (NASDAQ:GTAT) 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 6.18%.

GT Advance Technologies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.25% to $0.15 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Rose 0.63% to $168.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: GT Advance Technologies Inc. reported adjusted EPS income of $0.15 per share. By that measure, the company beat the mean analyst estimate of $0.09. It missed the average revenue estimate of $169.01 million.

Quoting Management: “We were pleased with our performance in the second quarter. Against the backdrop of continuing challenges in our served markets, we delivered on-target revenue and outperformed with earnings, gross margin and cash,” said Tom Gutierrez, president and chief executive officer. “We continue to believe that our sapphire business will be the key driver for the balance of this year and we are confident we will resume shipments of ASF units in the second half of this year. This is based on recent positive developments in the LED market combined with the progress we have made in developing opportunities for our sapphire business in new markets outside of LED.”

Key Stats (on next page)…

Revenue increased 191.28% from $57.78 million in the previous quarter. EPS increased to $0.15 in the quarter versus EPS of $-0.07 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 $0.11 to a profit $0.08. For the current year, the average estimate has moved down from a profit of $0.30 to a profit of $0.29 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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

More Articles About:   , , ,  

More from The Cheat Sheet