Supertex Earnings: Everything You Must Know Now

Supertex Inc. (NASDAQ:SUPX) delivered a profit 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.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Supertex Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 63.64% to $0.18 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Decreased 10.94% to $14.65 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Supertex Inc. reported adjusted EPS income of $0.18 per share. By that measure, the company beat the mean analyst estimate of $0.05. It beat the average revenue estimate of $14.15 million.

Quoting Management: “While total annual sales declined 7% compared to fiscal 2012, we believe our quarterly sales have troughed and we expect our new products will fuel future growth,” stated Dr. Henry C. Pao, President and CEO. “We launched 22 new products during fiscal 2013 and have many more in the pipeline, of which four are expected to be launched in the first quarter of fiscal 2014. Most of our new products address our growth markets, medical and LED general lighting and backlighting, however we are also working on products for new industrial applications. In addition, we are working on several exciting custom products which could generate revenue even this fiscal year. During fiscal 2013 we generated $4.2 million in net income with a tax rate of 11% and $17.9 million in positive cash flow from operating activities. We paid a special dividend of $11.5 million and repurchased 498,000 shares of our common stock for $8.7 million.”

Key Stats (on next page)…

Revenue increased 1.95% from $14.37 million in the previous quarter. EPS increased 50% from $0.12 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 $0.06 and has not changed. For the current year, the average estimate is a profit of $0.28, 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)