International Rectifier Earnings: Here’s Why Shares are Down Now

International Rectifier Corporation (NYSE:IRF) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.48%.

International Rectifier Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.02 in the quarter versus EPS of $-0.20 in the year-earlier quarter.

Revenue: Rose 2.53% to $276.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: International Rectifier Corporation reported adjusted EPS loss of $0.02 per share. By that measure, the company beat the mean analyst estimate of $-0.1. It beat the average revenue estimate of $260.13 million.

Quoting Management: “Fourth quarter revenue exceeded our expectations, increasing significantly as all of our business segments posted strong sequential growth,” stated President and Chief Executive Officer Oleg Khaykin. “In addition, our gross margin recovery continued, coming in at the high end of guidance as a result of improving business demand, utilization and mix. Our non-GAAP operating income turned positive in the fourth quarter at $4.5 million, capital expenditures remained below our target of 7% of sales and we increased our cash balance by $52.5 million.”

Key Stats (on next page)…

Revenue increased 23.29% from $224.27 million in the previous quarter. EPS decreased to $-0.02 in the quarter versus EPS of $-0.29 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.05 and has not changed. For the current year, the average estimate is a loss of $1.02, which is the same with that ninety days ago.

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)