Brooks Automation Beats Expectations but Takes a Step Back Anyway

Brooks Automation (NAS: BRKS) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Brooks Automation beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.

Gross margins improved, operating margins contracted, and net margins dropped.

Revenue details
Brooks Automation chalked up revenue of $120.2 million. The six analysts polled by S&P Capital IQ predicted a top line of $117.1 million on the same basis. GAAP reported sales were 33% lower than the prior-year quarter's $178.4 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.06. The five earnings estimates compiled by S&P Capital IQ averaged $0.03 per share on the same basis. GAAP EPS of $0.05 for Q1 were 86% lower than the prior-year quarter's $0.36 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.6%, 150 basis points better than the prior-year quarter. Operating margin was 1.4%, 1,200 basis points worse than the prior-year quarter. Net margin was 2.5%, 1,070 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $136.0 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $566.3 million. The average EPS estimate is $0.71.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 166 members out of 183 rating the stock outperform, and 17 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Brooks Automation a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brooks Automation is hold, with an average price target of $11.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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