Nanometrics Incorporated Earnings: Here’s Why Investors are Not Happy Now

Nanometrics Incorporated (NASDAQ:NANO) 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 7.96%.

Nanometrics Incorporated Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.17 in the quarter versus EPS of $0.13 in the year-earlier quarter.

Revenue: Decreased 35.03% to $34.55 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Nanometrics Incorporated reported adjusted EPS loss of $0.17 per share. By that measure, the company beat the mean analyst estimate of $-0.20. It beat the average revenue estimate of $32.26 million.

Quoting Management: President and chief executive officer, Dr. Timothy J. Stultz, said, “Increased spending by our largest customers and resumption of investments in memory devices led to 41% growth in revenues — and a doubling in product sales — over the previous quarter. During the second quarter we also saw meaningful progress against a number of our strategic objectives, including increased adoption of our leading-edge products by pure-play foundry customers. Looking forward, we continue to see improvement in our business outlook, growth in second half revenues over the first half, and an optimistic outlook for 2014 driven by investments in emerging technologies and increasing capacity across all device types.”

Key Stats (on next page)…

Revenue increased 40.73% from $24.55 million in the previous quarter. EPS increased to $-0.17 in the quarter versus EPS of $-0.22 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 $0.04 and has not changed. For the current year, the average estimate has moved down from a loss of $0.11 to a loss of $0.14 over the last ninety days.

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