Rubicon Technology Earnings: Here’s Why the Stock is Falling Now

Rubicon Technology, Inc. (NASDAQ:RBCN) had a loss 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 down 10.68%.

Rubicon Technology, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.26 in the quarter versus EPS of $-0.06 in the year-earlier quarter.

Revenue: Decreased 38.24% to $10.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rubicon Technology, Inc. reported adjusted EPS loss of $0.26 per share. By that measure, the company missed the mean analyst estimate of $-0.21. It missed the average revenue estimate of $10.82 million.

Quoting Management: William Weissman, CFO of Rubicon Technology, said, “Idle plant costs in the second quarter totaled $3.7 million, which is a significant portion of our gross loss. Based on the large core volumes we are currently shipping, we expect our boule inventory levels to decrease quickly and anticipate re-engaging idle crystal growth capacity early next year. Utilization of our polishing operations will improve with the strengthening of six-inch wafer orders and the start of patterned substrate production.”

Key Stats (on next page)…

Revenue increased 26.35% from $8.31 million in the previous quarter. EPS decreased to $-0.26 in the quarter versus EPS of $-0.15 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 loss of $0.09 to a loss $0.12. For the current year, the average estimate has moved down from a loss of $0.48 to a loss of $0.52 over the last ninety days.

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

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