STR Holdings Goes Negative

STR Holdings (NYSE: STRI  ) reported earnings on March 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), STR Holdings met expectations on revenues and missed expectations on earnings per share.

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

Margins shrank across the board.

Revenue details
STR Holdings chalked up revenue of $36.5 million. The five analysts polled by S&P Capital IQ expected to see revenue of $36.5 million on the same basis. GAAP reported sales were 63% lower than the prior-year quarter's $97.6 million.

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 -$0.10. The two earnings estimates compiled by S&P Capital IQ forecast -$0.04 per share on the same basis. GAAP EPS were -$1.64 for Q4 against $0.31 per share for the prior-year quarter.

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 11.6%, 2,630 basis points worse than the prior-year quarter. Operating margin was -11.9%, 3,530 basis points worse than the prior-year quarter. Net margin was -183.8%, 19,730 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $36.9 million. On the bottom line, the average EPS estimate is $0.05.

Next year's average estimate for revenue is $207.8 million. The average EPS estimate is $0.48.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 49 members out of 54 rating the stock outperform, and five members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give STR Holdings a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on STR Holdings is hold, with an average price target of $9.84.

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