Newport Corp. (NASDAQ:NEWP) 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.
Newport Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 16.67% to $0.20 in the quarter versus EPS of $0.24 in the year-earlier quarter.
Revenue: Decreased 12.64% to $134.23 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Newport Corp. reported adjusted EPS income of $0.20 per share. By that measure, the company beat the mean analyst estimate of $0.13. It missed the average revenue estimate of $135.18 million.
Quoting Management: Robert J. Phillippy, Newport’s President and Chief Executive Officer, stated, “We are very encouraged by the rebound in new orders during the second quarter. Our new orders increased 10.5% sequentially to $147.6 million and our book-to-bill ratio was greater than 1.0 in all of our target end markets. As expected, our net sales and non-GAAP income increased slightly on a sequential basis. In addition, we strengthened our balance sheet by generating $21.8 million in cash from operations and using $10.2 million of that cash to reduce our outstanding debt.”
Key Stats (on next page)…
EPS increased 185.71% from $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 $0.26 to a profit $0.19. For the current year, the average estimate has moved down from a profit of $0.90 to a profit of $0.66 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)