Rofin-Sinar Technologies Inc. (NASDAQ:RSTI) delivered a profit and missed Wall Street’s expectations, AND 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 1.66%.
Rofin-Sinar Technologies Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 7.14% to $0.26 in the quarter versus EPS of $0.28 in the year-earlier quarter.
Revenue: Rose 1.33% to $131.15 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Rofin-Sinar Technologies Inc. reported adjusted EPS income of $0.26 per share. By that measure, the company missed the mean analyst estimate of $0.28. It missed the average revenue estimate of $135.58 million.
Quoting Management: “During the second quarter we experienced significantly higher sales in our MACRO product lines, mainly driven by the machine tool industry, while our MICRO & MARKING business declined as expected, triggered by weaker sales to the electronics and semiconductor industries. Due to the timing of revenue recognition, we achieved an overall result that was in line with the lower end of our guidance for the second quarter”, commented Gunther Braun, CEO and President of RSTI. “On a geographical basis, North American and Asian order entry softened compared to the second quarter of last year, while European order entry reached its highest level since the third quarter of 2011. We expect a stable environment for laser material processing even when global business conditions are taken into consideration.”
Key Stats (on next page)…
Revenue decreased 7.79% from $142.23 million in the previous quarter. EPS decreased 18.75% from $0.32 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 $0.37 and has not changed. For the current year, the average estimate has moved up from a profit of $1.54 to a profit of $1.58 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)