Why Electro Scientific Industries Shares Plunged Today
Shares of Electro Scientific Industries (NASDAQ: ESIO) have plunged today, down by 18% as of 1:15 p.m. EST, after the company reported fiscal third-quarter earnings. Despite it proclaiming that the results were "strong," investors were not impressed.
Revenue in the fiscal third quarter came in at $110.8 million, with GAAP net income of $34 million, or $0.94 per share. On a non-GAAP basis, net income was $35.6 million, or $0.99 per share. The company has now completed its cost-reduction strategy , leading to GAAP gross margin expanding from 33.9% a year ago to 48% last quarter.
Total orders in the third quarter were $134 million, which CEO Michael Burger said was due to consumer electronics products becoming more complex, requiring greater flexible circuit content per device.
"We delivered another quarter of excellent financial results. I'm particularly proud of the entire ESI team as they demonstrated the power of our highly scalable cost model by shipping a record amount of product, resulting in dramatic increases in revenue and profitability, Burger said in a statement. "Our non-GAAP gross margin rate of nearly 49% enabled adjusted operating margin of over 32% and adjusted quarterly earnings of nearly $1.00 per share."
In terms of guidance for the fiscal fourth quarter, Electro Scientific expects revenue to be in the range of $95 million to $110 million, with non-GAAP earnings per share of $0.75 to $0.95.
10 stocks we like better than Electro Scientific Industries
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Electro Scientific Industries wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of January 2, 2018